Page 12 - FDMAsia MayJun 2025

10 MARKET BEATS MAY/JUN 2025 FDM ASIA | www.fdmasia.com

Wikimedia Commons noted that uncertainty is keeping clients on the sidelines. Tools
manufacturer Stanley Black & Decker, for one, is raising its
prices to mitigate tariff impacts.
Trump recently agreed to a 90-day tariff truce with China and

is advancing a deal with the UK, which has bolstered the stock
market, according to Politico. Nonetheless, many tariffs remain
in place for the foreseeable future, including those on certain
building materials, and they are widely expected to make items
more expensive and drive inflation higher in the months ahead.
“While recent developments have reduced tariff-related
Recent Developments In The uncertainty, the 25 percent tax on steel and aluminium imports

Construction Industry remains in place, and a sudden resumption in imports from
China could cause an increase in shipping prices,” Basu said.

Costs of US construction decline but some materials' Indeed, Federal Reserve Chair Jerome Powell warned that
prices up because of tariffs the US could face an increase in supply shocks, according
Construction input prices decreased 0.1 percent in April compared to CBS news.
to the previous month, while non-residential construction costs "We may be entering a period of more frequent, and
continued their upward march and rose 0.2 percent, according potentially more persistent, supply shocks—a difficult challenge
to an Associated Builders and Contractors (ABC) analysis of for the economy and for central banks," Powell told reporters.
US Bureau of Labor Statistics’ Producer Price Index data. Despite this, builders are staying optimistic. Just one in

ABC Chief Economist Anirban Basu attributed the overall four contractors expect their profit margins to contract over the
decline to falling energy prices. Gas prices fell 7.1 percent, next six months, according to ABC’s Construction Confidence
while prices for unprocessed energy materials and crude Index. Construction backlog also rose to its highest level since
petroleum were down 5.0 percent and 4.9 percent, respectively. September 2023, per ABC.
That dip follows three months of increases, including
unusually steep jumps in March. Overall construction input prices Japan housing construction starts at the highest level
are 0.1 percent higher than a year ago, while nonresidential After a weak start of the year, Japan's housing starts rose by
construction input prices are 0.2 percent higher. 39.1 percent year-over-year in February 2025, sharply picking
Although cheaper energy costs drove prices down, up from a 2.4 percent rise in the previous month and easily

President Donald Trump’s tariffs are still having an impact, exceeding market forecasts of a 1.0 percent increase, as reported
according to Basu. by Ministry of Land, Infrastructure, Transport and Tourism, Japan.
“Materials directly affected by tariffs saw sharp price It marked the strongest pace of expansion since
increases for the month. Steel mill product prices, for instance, September 2008, amid broad-based rises in new dwelling
rose 5.9 percent, while copper wire and cable prices increased for all components: owned (37.4 percent vs -0.2 percent in
5.0 percent,” Basu said in the release. February), rented (50.6 percent vs 3.2 percent), issued (99.6
In the first earnings season for public construction companies percent vs -40.4 percent), built-for-sale (22.8 percent vs 5.1

since Trump announced tariffs for most countries on April 2, percent), prefabricated (9.9 percent vs -0.9 percent), and
executives mostly downplayed their impact, though some two-by-four (45.9 percent vs 10.1 percent).