Construction material prices climbed 0.6% in February and are up 0.3% on a year-over-year basis, according to Associated Builders and Contractors. Prices in February were 41% higher than in February 2020.
Nonresidential construction material prices rose 0.6% from January to February and decreased 0.1% compared with one year ago. Softwood lumber prices are up 10.9% year over year and 2.8% from January to February. Iron and steel prices are down 13% year over year and up 3.9% for the month. Natural gas fell 5.9% from January to February and is up 48.4% year over year. Crude petroleum fell 2.4% for the month and is down 2% year over year.
“Nonresidential input prices increased at a rapid pace in February and have risen at a far-too-hot 9% annualized rate through the first two months of 2025,” said ABC Chief Economist Anirban Basu. “Iron and steel prices rose at a particularly fast rate in February, a result of tariffs providing domestic producers with increased pricing power.
“Despite the sizable increase over the past two months, nonresidential input prices are still down on a year-over-year basis,” Basu continued. “That will likely change in the coming months as tariffs continue to put upward pressure on prices. While ABC members are, on balance, still optimistic about their profit margins, according to ABC’s Construction Confidence Index, 23% of them expect their profitability to decline over the next six months, the highest share since October 2024.”
