The U.S. Bureau of Labor Statistics released its latest Producer Price Index data today, which includes numbers from March, before the latest rounds of tariffs being put into place and then paused by President Donald Trump.

The index is created based on BLS surveys of producers across the country each month, asking them how much money they are receiving for their products. It covers several industries, including agriculture, mining and materials used in construction. The index can serve as an early indicator of price inflation. Because the numbers were pulled before tariff increases took effect, it is difficult to gauge any potential inflation, or lack thereof, based on these numbers.

The index increased 2.7% during the past year, and was up 3.2% in February. For March, the index decreased 0.4%. A decrease means producers are getting lower prices for their goods and services.

The Associated Builders and Contractors (ABC) published its analysis of the construction materials numbers, saying that backlogs have decreased for some, but contractor confidence remains high.

“While many other economic sentiment readings have deteriorated in recent months, contractors remain optimistic that business conditions will improve through the first half of 2025,” ABC Chief Economist Anirban Basu said in a press release. “Nearly 60% of contractors intend to increase their staffing levels over the next six months, the highest share in over two years. These hiring expectations suggest that the recent slowdown in industrywide employment is largely confined to the residential segment. There are some broader signs of emerging economic weakness, but the results of this ABC member survey suggests that contractors will remain busy over the next few quarters.”

Construction input prices increased 0.5% in March, while nonresidential construction input prices increased 0.6% for the month, ABC’s analysis reported. Overall and nonresidential construction input prices are 0.8% higher than one year ago. Crude petroleum prices fell considerably in March, but that decline was more than offset by rising natural gas, steel, copper and lumber prices.

“Construction input prices increased at a rapid pace for the third consecutive month in March and have now risen at a 9.7% annualized rate through the first quarter of 2025,” Basu said. “The emerging effects of tariffs are glaring in the March data release, with iron and steel, steel mill products and copper wire and cable prices all rising more than 5% for the month. While contractors remain busy for the time being, according to ABC’s Construction Backlog Indicator, this pace of input price escalation, coupled with rising uncertainty, will cause projects to be delayed and canceled if it persists for any meaningful length of time.”