Monthly U.S. construction input prices increased 0.6% in February, according to an Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics Producer Price Index released March 13.

Nonresidential construction prices likewise rose 0.6% in February.

ABC reported a sharp increase in price for three commodities, with iron and steel increasing by 3.9%, steel mill products up by 2.7% and softwood lumber increasing by 2.8%.

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“Iron and steel prices rose at a particularly fast rate in February, a result of tariffs providing domestic producers with increased pricing power,” ABC Chief Economist Anirban Basu said in the release.

Construction input prices overall were up 0.3% year-over-year, while nonresidential input prices decreased by 0.1%.

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Basu added: “Despite the sizable increase over the past two months, nonresidential input prices are still down on a year-over-year basis. That will likely change in the coming months as tariffs continue to put upward pressure on prices. While ABC members are, on balance, still optimistic about their profit margins, according to ABC’s Construction Confidence Index, 23% of them expect their profitability to decline over the next six months, the highest share since October 2024.”