Tariffs showing early impact on US construction

A crane moves a delivery of steel coil. (Image: Adobe Stock)

Still, all three readings remained above the index’s watermark measurement, signalling continued expectations for growth over the next six months.

However, sentiment shifted notably following the April 2 tariff announcement. Among respondents who completed the survey after that date, fewer than 26% expected margins to grow, and more than 40% anticipated contraction.

ABC Chief Economist Anirban Basu said the survey reflects conditions largely before the new policy was introduced, calling the tariffs “the most consequential economic policy in several decades.”

He added that 80% of contractors reported supplier notifications of tariff-related material price increases, and nearly 20% experienced project delays or interruptions during March.

“These tariffs have already materially diminished the outlook for construction activity in 2025,” said Basu.

Tariffs haven’t kicked in yet but US construction materials prices already rising The prices of materials used in non-residential construction in the US rose for a third month in a row, before most tariffs have even kicked in