Associated Builders and Contractors (ABC) reported that its Construction Backlog Indicator fell to 8.8 months in June, according to an ABC member survey conducted June 22 to July 8. The reading is down 0.3 months from May but up 0.1 months from June 2025.

Only the middle states region experienced backlog growth on a monthly basis in June. In the Northeast region, backlog contracted sharply in June and is down by over a month from a year ago. 

ABC’s Construction Confidence Index readings for sales and staffing levels increased in June, while the reading for profit margins inched lower. The readings for all three components remain above the threshold of 50, indicating expectations for growth over the next six months.

Construction backlog jumped to its highest level in nearly three years in May, according to Associated Builders and Contractors. Work on the books increased to 9.1 months, up 0.3 months from April.

The strong backlog reading occurred, however, at the same time contractor confidence declined, according to ABC’s Construction Confidence Index. 

The construction industry added 11,000 jobs on net in June, according to an Associated Builders and Contractors analysis of data released by the U.S. Bureau of Labor Statistics. On a year-over-year basis, industry employment has expanded by 64,000 jobs, an increase of 0.8%.

Nonresidential construction employment increased by 19,900 positions, with gains in all three subcategories. Nonresidential specialty traded added the most jobs, increasing by 14,100 net positions. Nonresidential building and heavy and civil engineering added 3,200 and 2,600 jobs, respectively, in June.

The commercial construction market continues to show resilience in 2026, but the conditions shaping projects are becoming more complex.

Demand remains strong in sectors like data centers, advanced manufacturing, and infrastructure, while ongoing labor shortages, material escalation, tariffs, and supply chain uncertainty continue putting pressure on budgets and schedules. 

Here’s a closer look at the trends currently shaping construction demand, pricing, and delivery conditions across the industry.