Construction entry prices increased by 0.2% in May compared to the previous month, according to an analysis of builders and contractors associated with the Production Index of the U.S. Labor Statistics Office, published the 0.3% non -residential construction entry prices during the month.
ABC said that the general prices of construction entry are 1.3% higher than last year, while non -residential construction entry prices are 1.6% higher. The prices decreased by 2 of the 3 energy categories of the BLS slopes last month. Natural gas prices dropped by 18.7%, while prices for non -processed energy materials dropped by 3.5%. Brut oil prices increased by 1.3% in May.
“The prices of construction materials continued to increase at a faster rate than ideal in May,” said Anirban Basu, an ABC chief economist. “Although the entry prices have increased only 1.3% last year, this modest climb is completely due to the decrease in price during the second half of 2024. Costs have increased rapidly since the start of this year, with entry prices increasing to an annualized rate of 6% during the first five months of 2025.
Basu said that the recent duplication of the rates of Section 232 on steel and aluminum has not yet been heard in May data and prices may increase as contractors treat the new 50% rate rate in steel and aluminum imports. The rate of both metals was 25% above.
“The acceleration of the climbing of entry prices is largely due to the rapid increase in the price of goods affected by rates such as iron and steel,” said Basu. “Wait for this dynamic to be maintained in the coming quarters; this data precedes the iron and steel rates that increase from 25% to 50%, which came into force on June 4.”
Despite the increase in entry prices, contractors are relatively optimistic about their benefit margins, according to the ABC construction confidence index. Basu said that there was an economic inflation in everything expected in May and that the number of rates cuts planned by 2025 has increased, according to ABC calculation.
“If these expectations are performed, it would provide the construction industry with such a necessary unmistle,” he said.
