Construction materials prices have slightly increased in the United States, according to the latest analysis by the Associated Builders and Contractors (ABC).
According to the analysis of the US Bureau of Labor Statistics’ Producer Price Index data from the Associated Builders and Contractors, construction input prices increased by 0.6 per cent in February, while non-residential construction input prices increased by 0.6 per cent in the same month. Iron and steel, steel mill product and softwood lumber prices all increased sharply in February.
On a broader note, the overall construction input prices are 0.3 per cent higher than a year ago while nonresidential construction input prices are 0.1 per cent lower compared to the same period last year.
“Nonresidential input prices increased at a rapid pace in February and have risen at a far-too-hot 9.0 per cent annualised rate through the first two months of 2025,” ABC chief economist Anirban Basu said. “Iron and steel prices rose at a particularly fast rate in February, a result of tariffs providing domestic producers with increased pricing power.
“Despite the sizable increase over the past two months, nonresidential input prices are still down on a year-over-year basis.
“That will likely change in the coming months as tariffs continue to put upward pressure on prices. While ABC members are, on balance, still optimistic about their profit margins, according to ABC’s Construction Confidence Index, 23 per cent of them expect their profitability to decline over the next six months, the highest share since October 2024.”
