Backlog grew according to the latest data, fueled by infrastructure contracts and a wave of data center activity. But signs of stress are emerging beneath the surface.

Input prices are still climbing due to recently imposed tariffs. More than 80% of contractors have received supplier notices of higher prices in recent weeks, according to Associated Builders and Contractors.

Though contractors largely absorbed the initial round of those increases, several firms and industry economists warned prolonged cost escalation could lead to more project delays or cancellations.

That would hit an already strained private sector particularly hard. Fewer than 2% of contractors expect profit margins to increase significantly over the next six months, the lowest reading in nearly a year, according to ABC.

Meanwhile, construction labor conditions appear increasingly worrisome.

A spike in construction job openings and layoffs in July coincided with a drop in quits, signaling heightened anxiety among workers and employers. That trend likely stems from a combination of tighter immigration enforcement and uneven demand, rather than broad-based hiring momentum.

And while public-sector work marches on as a stabilizing force, especially in water and transportation projects, private nonresidential construction spending has now posted a year-over-year decline of 3.7%, according to data from the Bureau of Labor Statistics.

Here, Construction Dive rounds up the latest economic data for builders: