AGC: Construction Costs Rise at Fastest Rate Since January 2023
Producer Price Index for Materials and Services Experienced Largest Year-Over-Year Increase Since January 2023
From the article at Construction Business Owner:
The producer price index for materials and services used in nonresidential construction rose 0.4% in November and 3.6% over 12 months — the largest year-over-year increase since January 2023, according to an analysis by the Associated General Contractors of America (AGC) of government data. Association officials said the latest survey found rising materials costs are a top concern of contractors for 2026 as firms grapple with a host of tariffs on construction materials.
“Input costs for construction are rising faster than for producers or consumers in general, partly because the industry is faced with steep tariffs on many materials,” said Ken Simonson, the association’s chief economist. “Although many contractors are accelerating purchases and attempting to pass along cost increases, their bid prices have not kept up, rising only 2.7% in the past 12 months.”