The Associated Builders and Contractors (ABC) survey for February reported a backlog rate of 8.3 months, down from 8.4 months in January. The indicator is up 0.2 from February 2024’s rating of 8.1. 

“While many other economic sentiment readings have deteriorated in recent months, contractors remain optimistic that business conditions will improve through the first half of 2025,” Anirban Basu, chief economist at ABC.

Overall, backlog has fallen for contractors with less than $100 million in annual revenue, while rising for those with more than $100 million annual revenue. Regionally, the South and Northeast backlogs rose in February, while the West and Middle States backlogs declined.

ABC’s confidence index for February rose slightly in the staffing column, while profit margins fell a small amount. “Nearly 60% of contractors intend to increase their staffing levels over the next six months, the highest share in over two years,” said Basu. “These hiring expectations suggest that the recent slowdown in industrywide employment is largely confined to the residential segment.”