construction

The Construction Economist

Material prices at a 3-year high · Backlog records mask a split market · Steel, aluminum, and diesel driving nonres cost surge · Data center pulling subs from commercial · AI displacement: not in the data yet

May 14, 2026

Material prices at a 3-year high · Backlog records mask a split market · Steel, aluminum, and diesel driving nonresidential cost surge · Data center pulling subs from commercial · AI displacement: not in the data yet

Top News

Building Material Prices Up 3.7% in April — Fastest Pace in Three Years NAHB / BLS · 4 min read

Prices of building materials used in residential construction, excluding energy, rose 3.7% year-over-year in April — the fastest pace since 2023. Total inputs to new residential construction were up 5.9% from a year ago; No. 2 diesel fuel up 74.4% year-over-year, asphalt up 18%, softwood lumber reversed its multi-month decline, up 1.1%.

Backlog at 10-Month High — But the Gains Are Concentrated at the Top Construction Dive / ABC · 4 min read

Contractor backlog rose to 8.8 months in April, a 10-month high, according to ABC's Contractor Backlog Indicator. The headline is almost entirely a large-firm story: 42% of contractors with more than $100 million in annual revenues hold data center contracts, versus 7% of smaller firms. All other contractor size categories reported backlogs smaller than a year ago.

Materials & Supply Chain

PPI Inputs to Nonresidential Construction Up 5.5% Since December — Steepest Path Since 2022 Construction Analytics · 10 min read

PPI inputs to nonresidential construction rose 5.5% from December through April 2026, with the year-to-date average tracking 3.6% above 2025. Steel mill products are up 10% since December, aluminum up 14%, copper up 8%, lumber up 7%, diesel up 83%. YTD final-cost inflation: Nonres Bldgs +4.4%, Residential +4.3%, Non-bldg +3.9%.

Project Finance & Economics

Data Center Construction Up 22% From 2025 Average, Averaging 2.8% Monthly Growth Construction Analytics · 10 min read

Data center construction spending is up 9% since December and 22% above the 2025 annual average through March, with monthly spending growth averaging 2.8% in Q1 2026. The sector is the primary driver behind non-building infrastructure's positive forecast — without it, the infrastructure picture looks considerably weaker.

Labor & Workforce

NY Fed: Job Posting Data Shows No Clear AI-Driven Decline in Labor Demand — Yet NY Fed Liberty Street Economics · 8 min read

A new NY Fed analysis of Lightcast job posting data finds that while vacancies for AI-exposed occupations have declined relative to less-exposed ones, that divergence predates the release of ChatGPT in late 2022 — and hasn't accelerated since. Less than 10% of workers and vacancies are in occupations with high AI exposure; 40% are in jobs with zero measured exposure. Firms are mostly retraining workers in AI-exposed roles, not cutting hiring.