Building materials made of steel, copper and other metals had some of the highest price growth rates in the U.S. in the first half of 2025 in comparison to the previous year. The growth rate of the cost of several construction materials was slightly lower than in late 2024. It is important to note, though, that the figures provided are Producer Price Indices, which cover production within the United States, but do not include imports or tariffs. This might matter for lumber, as Canada's wood production is normally large enough that the U.S. can import it from its neighboring country. Construction material prices in the United Kingdom Similarly to these trends in the U.S., at that time the price growth rate of construction materials in the UK were generally lower 2024 than in 2023. Nevertheless, the cost of some construction materials in the UK still rose that year, with several of those items reaching price growth rates of over **** percent. Considering that those materials make up a very big share of the costs incurred for a construction project, those developments may also have affected the average construction output price in the UK. Construction material shortages during the COVID-19 pandemic During the first years of the COVID-19 pandemic, there often were supply problems and material shortages, which created instability in the construction market. According to a survey among construction contractors, the construction materials most affected by shortages in the U.S. during most of 2021 were steel and lumber. This was also a problem on the other side of the Atlantic: The share of building construction companies experiencing shortages in Germany soared between March and June 2021, staying at high levels for over a year. Meanwhile, the shortage of material or equipment was one of the main factors limiting the building activity in France in June 2022.

Building construction price indexes (BCPI), percent change, by type of building and construction division. Quarterly data are available from the first quarter of 1982. The table presents quarter-over-quarter and year-over-year percentage changes for various aggregation levels. The base period for the index is (2017=100).

The construction output price in the United Kingdom has reached an annual growth rate of two percent in September 2024. Construction costs have been increasing at a lower rate than in 2022 and 2023. The year-over-year growth rate reached over ** percent in May and June of 2022. Public and private housing was the construction segment with the highest output price increase. How have material costs developed over the years? Several factors influence construction material costs, including supply and demand, regulatory requirements, and transportation logistics. Manufacturing efficiency and global trade policies also play a big part, along with economic factors like inflation and currency fluctuations. In June 2022, the price of construction materials for new houses in the UK were ** percent higher than in 2015. What is the largest component of those costs? Labor costs are often one of the largest expenses in construction projects. That is due to the skilled nature of the work, which has a high demand for specialized trades. The construction sector's labor costs accounted for around ** percent of the sector's earnings in the United Kingdom in 2023. In the past years, the size of labor costs as a share of the construction sector rose by more than ***** percentage points, indicating that labor costs have increased at a faster rate than the overall revenue of the industry.

Construction Output Price Indices (OPIs) from January 2014 to December 2024, UK. Summary.

Building construction price indexes (BCPI) by type of building. Quarterly data are available from the second quarter of 1982. The table presents quarter-over-quarter and year-over-year percentage changes for various aggregation levels. The base period for the index is (2017=100).

Between 2022 and 2025, the construction price of residential and non-residential buildings in Canada has grown at the same pace. The price of both types of buildings was roughly ***** percent higher in the last quarter of 2025 than in 2024, which is the year when the index base was set at 100. Nevertheless, that only considers the cost of buildings in 15 selected metropolitan areas in Canada. Toronto was by far the metropolitan region with the highest construction costs in Canada.

What determines construction costs? The growth rate of the construction price of different types of buildings tends to follow similar trends to some extent. For example, price growth rates in Canada for most types of buildings were more moderate in 2024 than in previous years. However, those figures show a lot of disparity, with the cost of building a high rise apartment building growing much faster than that of other types of buildings. This might be because the construction costs depend on elements such as the location, materials, and complexity of the building, which tend to be quite different for each type of building.

Lumber building materials in Canada In 2024, Canada was the world’s second-largest exporter of wood building materials such as veneer sheets, parquet flooring, particleboard, laminated wood, and builders’ joinery and carpentry. Forestry, logging, and processing wood into ready-to-use materials are important industries in the Canadian economy. High price growth rates of building materials impact negatively the construction industry as their activities become more expensive. However, the forestry and logging industry benefited from the cost of lumber rising in 2020 and 2021. In the past years, the price of lumber, however, has fallen again.

In March 2024, Mumbai had the highest construction cost index at 129, while Chennai had the lowest at 124. During the presented period, the construction cost reached its peak in March 2022.

Graph and download economic data for Producer Price Index by Commodity: Special Indexes: Construction Materials (WPUSI012011) from Jan 1947 to May 2025 about materials, construction, commodities, PPI, inflation, price index, indexes, price, and USA.

Italy - Construction cost index was EUR114.10 points in December of 2023, according to the EUROSTAT. Trading Economics provides the current actual value, an historical data chart and related indicators for Italy - Construction cost index - last updated from the EUROSTAT on July of 2025. Historically, Italy - Construction cost index reached a record high of EUR114.70 points in December of 2022 and a record low of EUR47.70 points in March of 1990.

The price expectations in the construction sector of the European Union started increasing slightly in the second half of 2024. That price growth, however, seems to be more moderate than previous price hikes. That happened after price growth expectations fell from its peak in 2022. In July 2025, the index reached a value of 3.3, which indicates that there were slightly more respondents expecting the price to keep rising than the ones expecting it to fall.

In 2024, the price of building materials in Mexico increased at a significantly lower rate than in 2021 and 2022. The annual growth rate of salaries in 2024 was much higher than that of the other types of construction costs. Salaries had an annual growth rate from around ***** to **** percent until 2016, since then they have been rising at a faster pace. Building construction, along with transport and urbanization, were the segments that made up most of the production value in the industry.

Graph and download economic data for Producer Price Index by Industry: Building Material and Supplies Dealers (PCU44414441) from Dec 2003 to Jun 2025 about dealers, materials, supplies, buildings, PPI, industry, inflation, price index, indexes, price, and USA.

The Construction sector has expanded over the past five years; nonresidential construction activity has been particularly strong, and a surge in materials costs has driven up contractors' rates. Contractors in the sector construct buildings and engineer projects across a wide range of industries and applications, so construction sector revenue tends to correlate with broader macroeconomic conditions. Volatile interest rates, specifically, have impacted sector activity in recent years, with high rates having cooled residential construction activity since 2022. Sector revenue has risen at a CAGR of 4.1% to reach an expected $3.7 trillion in 2025, including an estimated increase of 1.5% in 2025 alone as recent interest rate cuts encourage investment. In recent years, contractors have benefited from easing supply chain issues, with the price of construction materials having slowly fallen from its May 2022 peak (though remaining well above pre-pandemic prices). This more predictable business environment has only had a limited positive effect on the average sector profit margin, however, as the construction sector's perennial labor shortage has kept wage costs high. In 2025, the second Trump administration's policies have disrupted this previously stabilizing business environment, with ever-shifting tariff policies making it harder to plan for the future. A mounting trade war has the potential to disrupt supply chains and drive up the cost of materials, while plans for mass deportations threaten to further limit the sector's labor pool. Still, potential interest rate cuts in the coming years stand to spur increased investment in construction activity. Contractors are set to continue to benefit from increasing commercial and infrastructure construction activity, aided by the 2021 Infrastructure Investment and Jobs Act, the 2022 CHIPS and Science Act and the 2022 Inflation Reduction Act. The Trump administration has looked to disrupt some of the funding included in these bills, particularly that which targets the previous administration's climate goals, however. Basic macroeconomic drivers, including population growth, will continue to expand the construction sector. Areas of the country with lower regulatory burdens, namely the Southeast, will continue to outpace the country as a whole in both construction activity and population growth. Overall, sector revenue is set to climb at a CAGR of 2.0% to reach $4.1 trillion in 2030.

Indonesia Business Survey: Inflation Expectation: Construction data was reported at 3.778 % in Dec 2022. This records an increase from the previous number of 3.680 % for Sep 2022. Indonesia Business Survey: Inflation Expectation: Construction data is updated quarterly, averaging 3.646 % from Jun 2013 (Median) to Dec 2022, with 39 observations. The data reached an all-time high of 7.298 % in Sep 2013 and a record low of 3.180 % in Jun 2021. Indonesia Business Survey: Inflation Expectation: Construction data remains active status in CEIC and is reported by Bank Indonesia. The data is categorized under Indonesia Premium Database’s Business and Economic Survey – Table ID.SD008: Business Survey: Inflation Expectation. [COVID-19-IMPACT]

From 2015 to 2024, the construction output prices of public and private housing increased by ***** percent in the United Kingdom (UK). Meanwhile, the prices of industrial buildings increased by ***** percent during that period, and infrastructure prices by ***** percent. Housing and industrial are the segments that increased the most during that period. Balfour Beatty ranked in the past years as the construction firm with the largest revenue in the UK.

Construction supplies wholesalers' revenue flows in tandem with construction activity, driven by economic conditions, demographics and environmental initiatives. Ireland's housing shortage has constrained sales opportunities to housing contractors and trade retail outlets where new homeowners venture to renovate their new property. Substantial construction supplies price inflation between 2022 and 2023 dissuaded downstream customers from undertaking significant construction projects or home renovations. Moreover, the steep price rises wreaked havoc on the margins of some wholesalers as the tricky market meant many instances of stock passing its sell-by date. According to the CSO, the volume of production in building and construction dropped by 6.3% over 2023. While new sales opportunities were few and far between, wholesalers recouped some revenue via the inflation of key products like cement, stone, plaster and glass. In 2024, price stability for most construction materials and anticipated cuts to interest rates are supporting a bright outlook among households and construction companies, sparking an estimated 1.4% increase in revenue for their suppliers. Over the five years through 2024, construction supplies wholesalers' revenue is forecast to grow at a compound annual rate of 0.4% to reach €5.9 billion. As prices stabilise, the profitability of wholesalers will likely increase as it enables better price forecasting and inventory management; it also encourages purchases of high-margin items. Looking forward, Project Ireland 2040 will provide a steady stream of revenue for construction supplies wholesalers. To accommodate one million extra people by 2040, the Irish government is investing over €150 billion in a series of major housing developments, as well as civil engineering, public infrastructure and commercial building projects, which will require substantial quantities of construction equipment. Wholesale bypass is set to remain a serious threat to wholesalers. Nevertheless, over the five years through 2029, industry revenue is set to climb at a compound annual rate of 1.9% to reach €6.5 billion.

Sales of construction supplies are driven by the level of commercial and residential construction and renovation activity, construction material prices and private consumption. Construction material prices surged over the two years through 2022-23 due to the supply disruptions arising from the Russia-Ukraine conflict. Due to economic uncertainty and rising costs, the construction industry is facing a tough time with fewer new projects. However, there's a silver lining as demand for repair and maintenance work is on the rise, which has helped keep the overall construction supplies output steady. Competition among wholesalers is fierce, especially for those offering durable and cost-effective solutions. While high energy prices have been a hurdle, the recent stabilisation in material costs due to falling pressure in inflation offers some breathing room. In 2024-25, optimism in the construction sector is growing, driven by falling material prices, with revenue anticipated to climb by 4.1% over the year. Falling material prices are also set to improve the industry’s average profit margin. Several social infrastructure frameworks, like the New Hospital Programme and the School Rebuilding Programme, have provided a much-needed inflow of demand for construction supplies. Industry revenue is forecast to inch upwards over the five years through 2024-25 at a compound annual rate of 0.2% to reach £40.5 billion. Looking forward, several opportunities present themselves to construction supplies wholesalers. The government’s commitment to tackling the housing shortage will foster sales to residential building contractors. To meet the government's aim of decarbonising the UK's power system by 2030, construction investments will be poured into constructing renewable energy systems, boosting demand for wholesalers. Sustainably sourced or energy-efficient materials will climb in popularity, likely supporting a widening profit margin. Over the five years through 2029-30, revenue is forecast to grow at a compound annual rate of 5.4% to reach £52.8 billion.

The production price index (PPI) for construction materials and components in the United States decreased slightly in 2024. Up until 2020, construction prices had been rising fairly steadily. However, in the years after that construction producer prices have been very unstable. Production price index A PPI of *** in 2022, indicates that the real-world price has risen by *** percent in comparison to the base year - 1982 in this case. Similarly, under the same baseline, the PPI for construction machinery and equipment has also risen steadily until 2018. Like all prices, there are regional differences within the United States. The PPI acts as a measurement for the average changes in prices that domestic producers receive for their output. In the United States, the PPI is one of the oldest continuous statistical datasets published by the government. Common construction materials Some building materials are essential to construction work, and the decision on which to use is important for the life and the endurance of the building. Materials such as cement, steel, and sand are essential to many construction projects. The production of cement is tightly linked to the demand that comes from the construction industry. The durability and potency of steel gives it an advantage over wood and concrete, providing buildings with a higher resistance but a cheaper price tag. Sand is commonly used in buildings, but it is especially common in roads that require stones of various grades and granulation.

Inflation Rate in Vietnam increased to 3.57 percent in June from 3.24 percent in May of 2025. This dataset provides the latest reported value for - Vietnam Inflation Rate - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

Albania Business Survey: Construction: Expected Inflation data was reported at 3.382 % in Mar 2025. This records a decrease from the previous number of 3.630 % for Dec 2024. Albania Business Survey: Construction: Expected Inflation data is updated quarterly, averaging 2.966 % from Mar 2018 (Median) to Mar 2025, with 29 observations. The data reached an all-time high of 13.544 % in Sep 2022 and a record low of 2.035 % in Sep 2021. Albania Business Survey: Construction: Expected Inflation data remains active status in CEIC and is reported by Bank of Albania. The data is categorized under Global Database’s Albania – Table AL.S005: Business Survey: Construction: Quarterly.