.webp?t=1776183314)
Building materials prices rose 2.2% in March, month over month, and 4.8% from March 2025, according to recent producer price index data released by the US Bureau of Labor Statistics.
The annual increase marks “the largest annual increase since January 2023,” Anirban Basu, chief economist at Associated Builders and Contractors, said in a statement.
While materials such as steel and steel products rose 1.6% and 2.1% respectively, crude oil prices have risen 20.2% since February.
“Prices of construction materials increased in March,” Basu said. “This monthly increase is due to rising oil prices, a direct result of the conflict in Iran, and it remains to be seen how this seismic geopolitical event will affect other input prices in the coming months.”
Despite rising prices, ABC’s construction backlog indicator rose to 8.6 months in March, up 0.5 months from February. Data centers continue to play a major role in construction growth: ABC’s survey shows that contractors working on data center projects report a 10.6-month backlog, while those without data center projects report an 8.3-month backlog.
By sector, infrastructure had the highest portfolio in March at 10.1 months, while heavy industry posted the lowest rate at 6.9 months. At regional level, the delay in the South was the highest, with 9.4 months.
“The portfolio has fully recovered from the four-year low in January and, at 8.6 months, is now back to levels not seen since last summer,” Basu said, adding that contactors appear “out of step” on higher input prices.
Looking for quick answers on construction and engineering topics?
Try Ask ENR, our new intelligent AI search tool.
Ask ENR →
