Construction Materials Costs Rise for Third Month on Tariff Pressures

January 06, 2026

Construction input prices increased 0.5% in March, while nonresidential input prices climbed 0.6%, both unusually steep jumps, according to an analysis by Associated Builders and Contractors of U.S. Bureau of Labor Statistics data. Moreover, both overall and nonresidential input prices are now 0.8% higher than a year ago and sit more than 40% higher compared to February 2020, largely due to a sharp rise in natural gas, steel, copper and lumber prices. The price escalations across the board reflect early impacts from tariffs and mark the third straight month of price jumps, according to Anirban Basu, ABC chief economist.

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