Input prices for new nonresidential construction rose 1.8% in May and 8.4% year-over-year (y/y), the largest y/y increase since November 2022, according to producer price index (PPI) data the Bureau of Labor Statistics (BLS) posted on Thursday. The increase far outpaced the 3.5% y/y rise in the PPI for new nonresidential building construction, a measure of what contractors say they would charge. AGC posted tables and charts of construction-related PPIs. The diesel fuel PPI soared 20% in May and 106% y/y, which contributed to increases in the index for truck transportation of freight of 3.4% and 17%, respectively. PPIs for three key metals used in construction continued to post outsized increases, driven by tariffs as well as the Middle East conflict. The index for aluminum mill shapes rose 4.2% for the month and 49% y/y. The PPI for copper and brass mill shapes climbed 4.3% and 27%, respectively. The index for structural steel—specifically, bar joists and rebar—rose 1.0% and 16%, respectively. Readers are invited to report about project timing, materials price changes, and supply chains to ken.simonson@agc.org and to view AGC’s Tariff Resource Center for up-to-date, detailed information about relevant tariffs.
The Dodge Momentum Index (DMI)—“a monthly measure based on the three-month moving value of nonresidential building projects going into planning, shown to lead construction spending for nonresidential buildings by a full year to 18 months”—rose 5.9% in May from a downwardly revised April reading, Dodge Construction Network reported on Monday. Commercial planning climbed 6.9%, while institutional planning rose 3.1%. “Over the month, planning activity for traditional office buildings, data centers and retail stores improved, while warehouse, hotel and parking garage planning slowed down. On the institutional side, healthcare planning continued to accelerate in May, alongside government and religious building activity. Meanwhile, educational and recreational building momentum slowed down. Year-over-year, the DMI was up 33.8% when compared to May 2025. The commercial segment was up 41.2% (+6.6% when data centers are removed) and the institutional segment was up 17.7% over the same period.”
“Economic activity in the services sector continued to expand in May” for the 21st month in a row, the Institute for Supply Management (ISM) reported on June 3. All 18 sectors reported paying higher prices for materials and services. Construction respondents were among 17 sectors reporting expansion; the only industry reporting a contraction in May was real estate, rental & leasing. Construction was also among the sectors reporting increases in prices paid (17 sectors), business activity (16), inventories (12), employment (6) and order backlogs (4), along with slower supplier deliveries (14), a decrease in new orders (2) and no change in imports (15). Items significant for construction reported up in price include aluminum (3 months in a row); construction materials; copper (6 months); copper-based products; diesel fuel (3); heating, ventilation, and air conditioning equipment; roofing materials; and steel products (2). No price declines were reported. One construction-related item was reported in short supply: breakers.
“The median wage of payroll workers in construction was $61,370 in 2025, with the top 25% earning at least $83,480,” the National Association of Home Builders reported on June 4. “In comparison, the U.S. median annual wage was $50,980, while workers in the top quartile (the highest paid 25%) earned at least $80,520. These estimates come from the latest release of the [BLS] Occupational Employment and Wage Statistics (OEWS) and do not include premium pay (stock and year-end bonuses, overtime pay, weekend premium pay, etc.)….The highest-paid managers in the industry were architectural and engineering managers, with half earning more than $163,290…Among construction trades, elevator installers and repairers remained at the top of the median-wage list, with half earning over $113,710 a year…This is the only construction trade that made the industry’s overall top 20 highest-paid occupations list. First-line supervisors of construction trades are next on the trade list with a median wage of $80,000…In general, construction trades that require more years of formal education tend to offer higher annual wages….Carpenters are one of the most prevalent skilled trades in the construction industry. The occupation typically requires less formal education than many other professions, yet carpenters working in construction still earn wages well above the national median for all occupations. In 2025, half of carpenters earned more than $60,950…Plumbers [median: $63,270] and electricians [median: $61,800], trades that typically require specialized training and licensing, had even higher annual wages”.
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