Building contractors concerned
Nearly 65% of building contractors think the U.S. construction industry is in decline, according to an October survey from the Associated Builders and Contractors.
The trade group's Construction Backlog Indicator decreased to 8.4 in October, off 0.1 since September but unchanged from October 2024. Roughly one in seven contractors is working on data centers, and those contractors have a 10.9-month backlog compared to eight months for those not building data centers, according to Anirban Basu, ABC's chief economist.
The survey, released Tuesday, found 23% of respondents expect their sales to drop in the next six months, the highest share in more than a year, ABC reported.
Small businesses face hiring challenges
Small business owners were less optimistic in October, reporting fewer sales and lower profits, according to a report released Tuesday.
The Small Business Optimism Index dropped 0.6 points last month to 98.2, though it still remains higher than the 52-year average of 98, the National Federation of Independent Business said.
NFIB members indicated that filling jobs was of particular concern as "many firms are still navigating a labor shortage and want to hire but are having difficulty doing so," said Bill Dunkelberg, NFIB's chief economist, in a statement. Labor quality was the biggest problem for 27% of respondents, the report showed.