That is according to analysis by Associated Builders and Contractors of the US Bureau of Labor Statistics鈥� Producer Price Index.

Overall construction input prices rose 0.3% compared to the same month a year ago, while non-residential construction input prices were 0.1% lower.

Nonetheless, iron and steel rise by 3.9% month on month in February, although prices were still -13% year on year.

Steel mill products were up 2.7% month on month but were -18.9% year on year.

Softwood lumber increased 2.8% month on month and rose 10.9% year on year.

ABC chief economist Anirban Basu said, 鈥淣on-residential input prices increased at a rapid pace in February and have risen at a far-too-hot 9.0% annualized rate through the first two months of 2025.

鈥淚ron and steel prices rose at a particularly fast rate in February, a result of tariffs providing domestic producers with increased pricing power.

鈥淒espite the sizable increase over the past two months, non-residential input prices are still down on a year-over-year basis. That will likely change in the coming months as tariffs continue to put upward pressure on prices.鈥�

Nonetheless, ABC members were still optimistic about their profit margins, according to ABC鈥檚 Construction Confidence Index. When asked about their profit margin expectations, 39.3% of members said they expected an increase over the next six months. However, the share expecting a decrease rose to 23%, which is the highest share since October 2024.

Source: Associated Builders and Contractors