Construction Economics
Backlog Rises in February Following 'Historic' Low
Heavy industrial posted the largest monthly gain while infrastructure backlog dropped from January’s level; Midwest construction activity strengthened
Associated Builders and Contractors shows total U.S. contractor backlog hovering at 8.1 months in February 2026, up slightly from January but down from 8.3 months in February 2025. Gains in heavy industrial work were offset by a sharp monthly drop in infrastructure backlog.
The Associated Builders and Contractors Backlog Indicator reached 8.1 months in February, according to a survey conducted amongst the association’s members. Backlog rose 0.1 months in January, while dropping 0.2 months year-over-year.
“Backlog bounced back from January’s four-year low, yet it remains subdued by historical standards,” ABC Chief Economist Anirban Basu said in a statement.
By industry, while infrastructure had the highest backlog at 8.9 months, the figure decreased from 10 months in January. Heavy industrial, at 8 months, experienced the largest monthly increase, up 2.2 months. Regionally, the biggest rise occurred in the middle states, up 1 month since January.
“It’s notable that backlog growth has been confined to the Middle States region,” said Basu. “After struggling in the immediate aftermath of the pandemic, the Midwest has posted surprisingly strong population and economic growth over the past year, and that growth has clearly translated into increased levels of construction activity.”
ABC’s Contractor Confidence Index, which measures confidence in sales, profit margins and staffing levels, shows all three components with a reading above 50, indicating that growth is expected to continue. However, while confidence in sales and staffing levels increased in February, the reading for profit margins has declined.
“While contractors remain slightly optimistic that their profit margins will expand over the next six months, that confidence may not survive the recent and precipitous increase in oil prices,” said Basu.
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