Construction Materials Prices Increase 0.6%—Steel Surges Nearly 4% in February

WASHINGTON, DC — Construction input prices increased 0.6% in February, according to an Associated Builders and Contractors analysis of US Bureau of Labor Statistics’ Producer Price Index data released March 13. Nonresidential construction input prices also increased 0.6% for the month.

Overall construction input prices are 0.3% higher than one year ago, while nonresidential construction input prices are 0.1% lower. Iron and steel, steel mill product and softwood lumber prices all increased sharply in February.

“Nonresidential input prices increased at a rapid pace in February and have risen at a far-too-hot 9.0% annualized rate through the first two months of 2025,” said ABC Chief Economist Anirban Basu. “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,” said Basu. “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% of them expect their profitability to decline over the next six months, the highest share since October 2024.”

Visit abc.org/economics for the Construction Backlog Indicator and Construction Confidence Index, plus analysis of spending, employment, job openings and the Producer Price Index.