The price producer of materials and services used in non -residential construction increased by 0.2% in August and 2.5% compared to the same month by 2024, promoted by the increase in steel and aluminum costs, according to an analysis of the general contractors associated with America published by the Office of Labor Statistics in the United States on September 10.
The AGC construction education center and the survey member found that the costs of increasing were a key motive for delayed, canceled or reduced projects, such as the Milwaukee Mass-Ti-Stimber Tower, of $ 32 million.
“I hope the rates will rise up the cost of construction materials over the coming months,” said Kenneth Simonson, an AGC chief economist. “The impacts have been limited so far due to effective dates to store and delay many rates, as well as softening the demand for projects,” he said.
The demand has been softened, Simonson said, in part due to the rates themselves, and also the uncertainty about what would be covered, when and over time.
AGC-NCCER analysis found that 43% of contractors reported that at least one project for the last six months had been canceled, postponed or reduced due to higher costs.
The Producer Price Index for Aluminum Forms increased by 5.5% last month and 22.8% from August 2024. The Molins d’Acer products index increased by 1.5% in August and 13.1% during the 12 months. The wooden and plywood index increased by 0.5% during the month and 4.8% year -on -year.
AGC said that two out of five construction companies reported to increase their own prices in response to rates, and many accelerated purchases to move forward.
Another 16% said they had absorbed their highest costs or worked with suppliers to share the load. Almost 40% of contractors said they expect material costs to rise even more in the coming months.
| Producer price index, August 2025 | 1 -MONTH % CHANGE | Change of 12 months % | Change since February 2020 |
| Contributions to the industries | |||
| Tickets for construction | 0.2% | 2.3% | 43.0% |
| Tickets to multi -family construction | 0.2% | 2.5% | 43.2% |
| Contributions to non -residential construction | 0.2% | 2.6% | 43.9% |
| Tickets to commercial construction | 0.3% | 3.6% | 45.8% |
| Contributed to health construction | 0.3% | 3.4% | 45.3% |
| Contributed to industrial construction | 0.3% | 3.2% | 41.3% |
| Contributions to other non -residential constructions | 0.2% | 2.4% | 43.4% |
| Entries for the maintenance and construction of air | 0.1% | 2.0% | 40.9% |
| Goods | |||
| Stickers and sealants | 0.0% | 3.0% | 39.4% |
| Structural mud tiles and brick | 0.1% | 1.4% | 32.8% |
| Concrete products | 0.0% | 1.7% | 41.7% |
| Machinery and building equipment | 0.5% | 4.0% | 35.3% |
| Sand of construction, gravel and crushed stone | 0.1% | 6.1% | 47.5% |
| Copper and cable wire | -3.8% | 13.8% | 60.2% |
| Dirty oil | -2.8% | -13.5% | 36.1% |
| Manufactured structural metal products | 0.8% | 5.9% | 60.8% |
| Plaster products | 0.0% | 0.9% | 48.7% |
| Rolled steel rolls, plates and structural shapes | 4.8% | 6.5% | 51.0% |
| Insulation materials | -0.1% | 0.1% | 46.1% |
| Iron and steel | 1.1% | 9.2% | 54.3% |
| Wood and wood products | 0.2% | 1.8% | 26.4% |
| Natural gas | -2.8% | 42.3% | 43.3% |
| Film accessories and accessories | 0.3% | 8.2% | 29.5% |
| Out of Assignment, Tar | 2.2% | 6.1% | 49.6% |
| Soft wood wood | 0.6% | 5.2% | 14.4% |
| Steel mills products | 1.5% | 13.1% | 66.1% |
| Switching, switchboard equipment, industrial controls | 0.1% | 10.5% | 63.2% |
| Unprocessed energy materials | -2.5% | -4.8% | 52.2% |
| Source: United States Work Statistics Office | |||
Absorbing impact
An analysis of the same data as associated builders and contractors said that price increases would have been worse if contractors could not take advantage of the lowest prices of fuel.
“The prices of construction materials increased modestly in August, although the increase would have been greater if it were not to reduce oil and natural gas prices,” said Anirban Basu, an ABC economist. “Prices increased at a particularly rapid rate in some categories that are most affected by rates.” He said iron and steel prices have increased by 9.2% year -on -year, while copper cable and cable prices increased by 13.8%. Non -residential entry prices increased to an annual rate of 5.3% by 2025, but contractors are widely optimistic about their benefit margins for the next six months, according to the ABC construction confidence index.
The prices of oil and gross natural gas fell by 2.8%, while the prices of non -processed energy materials decreased by 2.5% in August, according to an ABC analysis of PPI data. Contractors are generally optimistic about the rest of the year and 2026, but the impact of the highest rates and prices occurs on future purchases.
The ABC construction confidence rate for sales and benefits declined in July, while reading staff levels increased to the highest level since April. The readings of the three remain above 50, which indicates the expectations of growth over the next six months.
In terms of design, the American Institute of Architects/Deltek Architecture Billings Index, which has at least one year delay between Billings and Construction, is still negative at 46.2 in July.
