Construction input prices rose 3.4% in November, year over year, according to the Product Price Index recently released by the US Bureau of Labor Statistics. In monthly terms, global prices rose by 0.6%.
“Construction input prices rose in November,” Associated Builders and Contractors chief economist Anirban Basu said in a statement. “While [3.4% is] a relatively modest annual increase, it is also the largest since January 2023 and the trend offers plenty of cause for concern.”
Nonresidential construction listings rose 0.6% from October and 3.8% from November 2024, while in the multifamily sector, monthly prices rose 0.4% while annual prices rose 2.9%. Copper wire and cable, fabricated structural metal products, and hot-rolled steel bars, plates, and structural shapes experienced some of the highest annual increases.
“Many materials affected by the tariffs, such as derived metal products and switchgear, have seen significant price escalation by 2025,” Basu said. “Prices for mill forms of aluminum and primary and secondary non-ferrous metals have increased by more than 25% over the past year.”
Ken Simonson, chief economist for the Associated General Contractors of America, also noted the impact of the tariff. “Input costs for construction are rising faster than for producers or consumers in general, in part because the industry faces high tariffs on many materials,” Simonson said in a statement. “While many contractors are ramping up purchases and trying to pass on cost increases, their bid prices have not kept up, rising just 2.7% over the past 12 months.”
