Construction Materials Prices Increase 1.4% in January, Up 40.5% Since February 2020

WASHINGTON, DC — Building enter costs elevated 1.4% in January in comparison with the earlier month, in response to an Related Builders and Contractors evaluation of US Bureau of Labor Statistics’ Producer Worth Index information launched February 13. Nonresidential development enter costs elevated 0.9% for the month.

Total development enter costs are 1.3% greater than a 12 months in the past, whereas nonresidential development enter costs are 0.7% greater. Costs elevated in all three power subcategories final month. Crude petroleum costs elevated 14.8%, whereas pure gasoline and unprocessed power materials costs elevated 13.7% and 13.0%, respectively.

“Supplies costs elevated on the quickest month-to-month tempo in two years in January,” stated ABC Chief Economist Anirban Basu. “This fast escalation is basically attributable to three elements. First, power costs rose sharply. Second, producers usually increase their costs at the beginning of the 12 months. And third, many purchasers rushed to purchase inputs earlier than potential tariffs may go into impact, and that surge in demand pushed costs greater.”

“Of those three elements, tariffs are the one one that might proceed to push enter costs greater within the coming months,” stated Basu. “Import taxes enable home producers to boost their costs, and the brand new 25% levies on metal and aluminum will end in simply that if they continue to be in place. A robust majority of contractors count on their gross sales to extend over the subsequent six months, in response to ABC’s Construction Confidence Index, and the mixture of elevated demand for development inputs and ongoing provide chain confusion suggests enter value escalation may speed up by means of the primary half of 2025.”