A crane moves a delivery of steel coil. (Image: Adobe Stock)

Still, all three readings remained above the index鈥檚 watermark measurement, signalling continued expectations for growth over the next six months.

However, sentiment shifted notably following the April 2 tariff announcement. Among respondents who completed the survey after that date, fewer than 26% expected margins to grow, and more than 40% anticipated contraction.

ABC Chief Economist Anirban Basu said the survey reflects conditions largely before the new policy was introduced, calling the tariffs 鈥渢he most consequential economic policy in several decades.鈥�

He added that 80% of contractors reported supplier notifications of tariff-related material price increases, and nearly 20% experienced project delays or interruptions during March.

鈥淭hese tariffs have already materially diminished the outlook for construction activity in 2025,鈥� said Basu.

Tariffs haven鈥檛 kicked in yet but US construction materials prices already rising The prices of materials used in non-residential construction in the US rose for a third month in a row, before most tariffs have even kicked in