WASHINGTON — Associated Builders and Contractors reported that its Construction Backlog Indicator fell to 8.2 months in August, according to an ABC member survey conducted from August 20th to September 5th. The reading is down 1.0 months from August 2023.

View ABC’s Construction Backlog Indicator and Construction Confidence Index tables for August. View the full Construction Backlog Indicator and Construction Confidence Index data series.

Only the infrastructure category experienced a monthly increase in backlog among the three major segments, reflecting strength in public construction spending. Nonetheless, over the past year, backlog has declined in all three segments. 

ABC’s Construction Confidence Index readings for sales, profit margins, and staffing levels fell in August. The sales and staffing levels readings remain above the threshold of fifty, indicating expectations for growth over the next six months, while the reading for profit margin expectations fell below that threshold. 

“As predicted, confidence among contractors is slipping,” said ABC chief economist Anirban Basu. “While ABC contractor members are still anticipating expanding sales and employment, profit margins are increasingly under pressure as project owners face high borrowing and construction delivery costs in the context of a slowing economy. Many projects have been postponed, resulting in recent backlog declines, most notably in the South.”