b'Construction Material PricesRose in JanuaryConstruction material prices climbed 1.4% in January and Of these three factors, tariffs are the only one thatare up 1.3% on a year-over-year basis, according to could continue to push input prices higher in theAssociated Builders and Contractors. Prices in January were coming months, Basu continued. Import taxes40.5% higher than in February 2020. allow domestic producers to raise their prices, andNonresidential construction material prices rose 0.9% from the new 25% levies on steel and aluminum will resultDecember 2024 to January and increased 0.7% compared in just that if they remain in place. A strong majoritywith one year ago. Softwood lumber prices are up 9.5% year of contractors expect their sales to increase over theover year and down 1.8% from December 2024 to January. next six months, according to ABCs ConstructionIron and steel prices are down 13.6% year over year and up Confidence Index, and the combination of increased1.2% for the month. Natural gas rose 13.7% from December demand for construction inputs and ongoing supply2024 to January and 21.3% year over year. Crude petroleum chain confusion suggests input price escalationrose 14.8% for the month and is up 8.4% year over year. could accelerate through the first half of 2025.Materials prices increased at the fastest monthly pace intwo years in January, said ABC Chief Economist AnirbanBasu. This rapid escalation is largely due to three factors.First, energy prices rose sharply. Second, producers oftenraise their prices at the start of the year. And third, manypurchasers rushed to buy inputs before potential tariffscould go into effect, and that surge in demand pushed priceshigher.6'