The Construction Economist — June 19, 2026

Construction backlog hits a near three-year high as contractor confidence slips · Amazon plans a $10B Missouri data center campus · housing starts crater 15% · the Fed holds at 3.75% · Google.org puts $50M into the trades

Top News

ABC's construction backlog surges to a near three-year high, but contractor confidence slips

Associated Builders and Contractors (ABC) · ~3 min read

Associated Builders and Contractors (ABC) reported that its Construction Backlog Indicator (CBI) rose to 9.1 months in May — up 0.3 months from April and 0.7 months from a year earlier, a nearly three-year high. At the same time, ABC's Construction Confidence Index (CCI) readings for sales, profit margins, and staffing levels all fell, though each stayed above the 50 threshold that signals expected growth. The increase was concentrated among the 14% of members working on data centers, who reported 11.6 months of backlog versus 8.6 months for everyone else.

What it means: A growing backlog usually signals a healthy pipeline, so confidence falling alongside it is the tell. The headline number is being carried by a handful of data-center megaprojects — strip those out and the typical contractor's pipeline is closer to flat, which is why sales, margin, and staffing expectations all dipped in the same month. Averages up, breadth down: the boom is real, but narrow.

Amazon plans $10B Missouri data center campus

Construction Dive · ~2 min read

Amazon plans to build a $10 billion data center campus in Missouri, according to Construction Dive. Beyond the facility itself, the company says it will fund improvements to nearby roads and water infrastructure to support the development.

Housing starts fall 15.4% in May as multifamily construction slows

NAHB Eye on Housing · ~3 min read

U.S. housing starts fell 15.4% in May to a seasonally adjusted annual rate of 1.18 million units, according to Census and HUD data analyzed by NAHB. The decline was driven by a steep drop in multifamily construction, while single-family starts also slipped amid high interest rates, rising construction costs, and ongoing labor shortages. The figure is down 8.7% from a year earlier.

Project Finance & Economics

Fed holds its policy rate at 3.75% for a fourth straight meeting

NAHB Eye on Housing · ~3 min read

The Federal Reserve held its benchmark federal funds rate at a top rate of 3.75% at the conclusion of its June FOMC meeting, the fourth consecutive meeting with no change. The decision came under a new Fed chair and was paired with plans for evolving operating strategies, according to NAHB's Eye on Housing.

What it means: This was a "hawkish hold" — the Fed left rates unchanged and signaled it's in no rush to cut. For construction, that means the elevated borrowing costs squeezing project financing, developer pro formas, and interest-rate-sensitive housing starts are likely to persist into the second half of 2026. No relief on the cost of capital is the planning assumption for now.

Labor & Workforce

Google.org includes UA and MCAA in $50M skilled trades investment

MCAA – Mechanical Contractors Association · ~2 min read

Google.org — Google's philanthropic arm, which directs the company's charitable grants — included the United Association (UA, the union of plumbers and pipefitters) and the Mechanical Contractors Association of America (MCAA) in a $50 million skilled trades workforce investment, the MCAA said. The funding supports the UA's International Training Fund as part of a national effort to strengthen skilled trades training and expand career pathways.

AGC joins 150-plus employer coalition urging immigration relief

AGC News · ~2 min read

The Associated General Contractors of America (AGC) joined more than 150 business leaders and organizations in a letter urging Congress and the administration to address growing delays in Deferred Action for Childhood Arrivals (DACA) renewals and to enact permanent protections for recipients. The group says lengthy processing delays are causing some DACA recipients to lose work authorization, creating workforce disruptions.

Policy, Codes & Regulation

USDOT makes $626M available for infrastructure projects

AASHTO Journal · ~2 min read

The U.S. Department of Transportation is making $626.7 million available for infrastructure projects nationwide, prioritizing large-scale projects valued over $150 million, according to AASHTO Journal. The notice of funding opportunity also prioritizes projects that connect U.S. roads with the broader transportation system.

Tech & Tools

Autodesk details its "neural CAD" foundational models

Engineering.com · ~3 min read

Autodesk has detailed its work on "neural CAD," a set of AI foundational models the company describes as the next stage in 3D design. Engineering.com likened the concept to "Midjourney for CAD, but with fully editable results" and a more intuitive human-to-computer interface.

The Construction Economist — What's Moving Construction? The Economic Look-Ahead.