The producer price index for materials and services used in nonresidential construction rose 0.5 percent in July and 2.6 percent from July 2024, the largest 12-month increase since February 2023, according to an analysis by the Associated General Contractors of America of government data released today. Association officials urged the Trump administration to quickly resolve outstanding trade negotiations and ease the punitive tariff levels put in place with many U.S. trading partners.
“Steep tariff increases earlier this year on aluminum and steel, along with a more recent tariff on raw copper, drove the producer price index for construction inputs higher for the third-straight month,” said Ken Simonson, the association’s chief economist. “Even though contractors do not generally import materials directly, it is clear that domestic producers are raising prices in line with the protection tariffs are providing them.”
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