Associated Builders and Contractors’ Construction Backlog Indicator fell to 8.4 months in October 2026, its lowest reading since May and slightly below the previous month, according to the association’s latest survey of member contractors. Backlog held steady or rose in the three main sectors ABC tracks, but dropped sharply, to 5.8 months, among smaller contractors and firms that do not specialize in a single sector.
ABC Chief Economist Anirban Basu noted that nearly 65% of surveyed contractors believe the U.S. construction industry is currently in contraction. According to Basu, recent activity is being sustained mainly by manufacturing projects and the strong data center sector, where contractors reported an average backlog of 10.9 months, compared with 8.0 months for those outside that segment.
ABC’s Construction Confidence Index also sent mixed signals: sales expectations held steady in October, while confidence in profit margins and staffing levels declined. All three readings remained above 50, indicating that respondents still expect growth over the next six months, although a growing share of contractors (23%) now projects lower sales. For subsectors such as façades and building envelopes, which are tied to both industrial and data center work, the figures point to demand that remains firm in specific niches despite a general cooling of national backlog.
Source: Associated Builders and Contractors (ABC)