While materials such as iron and steel and steel mill products rose 1.6% and 2.1%, respectively, crude petroleum prices have increased by a whopping 20.2% since February.

“Construction materials prices surged in March,” said Basu. “This monthly increase is due to higher oil prices, a direct result of conflict in Iran, and it remains to be seen how that seismic geopolitical event will affect other input prices in the months to come.”

Despite the increase in prices, ABC’s Construction Backlog Indicator increased to 8.6 months in March, up 0.5 months since February. Data centers continue to play a large role in construction growth: ABC’s survey shows contractors working on data center projects report a 10.6-month backlog, while those without data center projects report an 8.3-month backlog.

By sector, infrastructure had the highest backlog in March, at 10.1 months, while heavy industrial saw the lowest rate, at 6.9 months. Regionally, the backlog in the South was the highest, at 9.4 months.

“Backlog has fully rebounded from January’s four-year low and, at 8.6 months, is now back to levels not seen since last summer,” said Basu, adding that contactors seem “unphased” by the higher input prices.