The price of materials and services used in nonresidential construction increased 0.8 percent from December to January, the largest jump in costs in the past 12 months, according to an analysis by the Associated General Contractors of America of government data released today. Association officials warned that steel and aluminum tariffs will further boost the cost of key construction materials and are likely to make construction projects more costly and invite retaliation by U.S. trading partners.
“Input costs are likely to jump even more if the Trump administration goes ahead with the tariffs it has threatened to impose,” said Ken Simonson, the association’s chief economist, noting that the January data was collected prior to the inauguration of President Trump. “Contractors that have started fixed-price projects will be squeezed by higher materials costs, while rising costs and delayed availability will make future projects more expensive.”
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