ABC reported that its Construction Backlog Indicator increased to 8.6 months, based on a member survey conducted from March 23 to April 6. This marks a gain of 0.5 months from February and a slight increase of 0.1 months compared to March 2025.

Contractors working on data center projects reported significantly longer backlogs, averaging 10.6 months, compared to 8.3 months among those not involved in that sector.

ABC’s Construction Confidence Index showed mixed results in March. Expectations for profit margins and staffing levels rose, while sales expectations declined. However, all three components remain higher than a year ago and above the threshold of 50, signaling anticipated growth over the next six months.

ABC Chief Economist Anirban Basu noted that backlog has recovered from January’s four-year low and is now at its highest level since last summer. Despite rising oil prices linked to geopolitical tensions, contractors appear largely unfazed, with profit margin expectations reaching their highest point since February 2025.

Staffing expectations have increased for four consecutive months and are now at their highest level since April 2022. This comes despite a recent dip in the industry’s hiring rate, aligning instead with stronger employment growth reported in March.

Basu cautioned that continued optimism may depend on how quickly geopolitical conflicts are resolved, as prolonged instability could drive up oil prices and borrowing costs.

The Construction Backlog Indicator measures the amount of work under contract, while the Construction Confidence Index reflects contractors’ outlook for the next six months.