ConDig (16-Dec-25) US construction backlog declined in November to its lowest level since early 2024, according to new data from Associated Builders and Contractors.

ABC said its Construction Backlog Indicator fell to 8.1 months in November, down 0.3 months from October 2025 and from November 2024. The indicator is based on an ABC member survey conducted between Nov. 20 and Dec. 8.

Backlog decreased on both a monthly and year-on-year basis for contractors of all sizes, except those with annual revenues exceeding $100 million, ABC said.

Despite the decline in backlog, contractor sentiment remained broadly positive. ABC’s Construction Confidence Index showed an increase in expectations for sales growth in November, while expectations for profit margins and staffing levels declined. All three components remained above the threshold of 50, signaling expectations for growth over the next six months.

“Backlog declined sharply in November and is now at the lowest level since February 2024,” said ABC chief economist Anirban Basu. “The decline was particularly steep for the smallest contractors; ABC members with under $30 million in annual revenues registered their lowest backlog reading in over four years.”

Basu noted a significant gap in exposure to data center construction between smaller and larger contractors. Fewer than 6% of contractors with annual revenues below $30 million reported being under contract for data center projects, compared with 37% of contractors with more than $100 million in annual revenues.

While most contractors remain optimistic about near-term growth, concerns around profitability are increasing. Only 33.6% of contractors expect their profit margins to expand over the next two quarters, the lowest share in more than a year.

“That likely reflects growing anxiety about materials costs, which have started to rise after several quarters of relative stability,” Basu said.