Despite Tariff Impacts, ABC Contractors’ Backlog and Profit Margin Expectations Improve in April

Associated Builders and Contractors reported today that its Construction Backlog Indicator rose to a 20-month high of 8.7 months in April, according to an ABC member survey conducted April 22 to May 6. The reading is up 0.3 months since April 2024.

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

Backlog has increased significantly over the past year for contractors with greater than $100 million in annual revenues. While backlog has also risen modestly for the smallest contractors, it is down on an annual basis for those with $30 million to $100 million in annual revenues.

ABC’s Construction Confidence Index reading for profit margins improved in April, while the readings for sales and staffing levels fell, though the outlook for sales is higher than a year ago. The readings for all three components remain above the threshold of 50, indicating expectations for growth over the next six months.

“Nearly 22% of contractors had a project delayed or canceled in April due to tariffs, up from 18% in March, while 87% have been notified of tariff-related materials prices increases,” said ABC Chief Economist Anirban Basu. “Contractors remain busy despite these headwinds; backlog rose in April and is now at the highest level since September 2023. While ABC members remain upbeat about the near-term outlook, the share of respondents that expect their sales to decline over the next six months rose to 19% in April, up 6 percentage points since the start of the year.”