The producer price index for materials and services used in nonresidential construction rose 0.2 percent in August and 2.5 percent from August 2024, driven by extreme increases in steel and aluminum prices, according to an analysis by the Associated General Contractors of America of government data released today. Association officials noted a survey the association and NCCER recently released found rising costs were one of the key reasons for delayed, canceled, or scaled-back projects.
“The huge increases in steel and aluminum tariffs appears to have enabled domestic producers to push up their selling prices,” said Ken Simonson, the association’s chief economist. He noted that the AGC-NCCER survey found that 43 percent of contractors reported at least one project in the past six months had been canceled, postponed or scaled back because of higher costs. “These price increases are prompting some owners to rethink planned construction projects.”
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