Construction industry leaders were more optimistic in January, according to Associated Builders and Contractors.
All three components of ABC’s Construction Confidence Index rose for the month but two of the three were down year over year.
In January, ABC’s Construction Confidence Index increased from 51.8 to 53.4 for profit margin expectations; from 60 to 61.2 for staffing levels; and from 62.9 to 64.7 for sales expectations.
Additionally, ABC’s Construction Backlog Indicator fell from 8.2 months in December 2025 to 8.0 months in January and was down 0.4 months compared with January 2025.
“Backlog fell to a four-year low in January, yet contractors remain shockingly sanguine about the near-term outlook,” said ABC Chief Economist Anirban Basu. “Just 13% of contractors expect their sales to decrease over the next six months, the smallest share since February 2022. Despite that personal confidence, ABC members are far less optimistic about their competition; 46% of contractors expect that other contractors will see their sales decline over the next two quarters. Whether or not this personal optimism is justified will likely depend on the extent to which borrowing costs can decline in 2026.”
