New data from the Associated Builders and Constructors (ABC) has shown that the backlog has increased in the American construction sector and that other key sector indicators are in good shape.
Associated Builders and Constructors (ABC) released new data from its Construction Backlog Indicator, which rose to 8.5 months in March. Responses from an ABC member survey informed the data and was an increase of 0.3 months compared to March 2024.
“Backlog increased in March and contractors remained optimistic regarding the future, but this largely reflects contractor activity and sentiment prior to April 2, when the most consequential economic policy in several decades was announced,” ABC chief economist Anirban Basu said.
ABC’s Construction Confidence Index reading for staffing improved, while the readings for sales and profit margins fell. The readings for all three components remain above the threshold of 50, indicating expectations for growth over the next six months.
Notably, respondents who completed the survey after the April 2 tariffs announcement were significantly less upbeat—fewer than 26 per cent of those respondents expected their profit margins to expand over the next six months, while more than 40 per cent expected them to contract.
“Approximately 80 per cent of ABC contractors surveyed indicate that suppliers have notified them of tariff-related materials price increases, and nearly 20 per cent of contractors surveyed had projects paused or interrupted because of tariffs during March,” Basu said.
“These tariffs have already materially diminished the outlook for construction activity in 2025. Many businesses are poised to delay or even cancel planned capital investments given the current business environment and daily market convulsions. Conditions will likely deteriorate further if elevated tariff rates remain in place for any meaningful length of time.”
