Puerto Rico construction prices up 4.2% as activity rebounds in August
Puerto Rico’s construction sector regained momentum in August after three months of decline, according to the Coincident Construction Index (ICC) prepared by economist Ángel Rivera-Montañez.
The index rose 0.2% from July to a preliminary 122.7 points and was up 4.9% compared with August 2024. Rivera-Montañez said the gains were driven by increases in payroll employment and cement sales.
The rebound coincides with the start of fiscal year 2026, which opened with activity “significantly higher” than the same period a year ago. The fiscal-year average shows 4.6% growth compared with a 1.3% decline the year before.
Rivera-Montañez noted that the early fiscal trend mirrors broader results across 2025, a year in which the sector has consistently outperformed 2024 levels.
During the first eight months of 2025, the index rose 4.8%, outpacing the 1.5% gain registered in the same period of 2024, Rivera-Montañez said.
But construction costs continue to climb. The Construction Price Deflator Index increased 4.2% year over year in August, the fourth consecutive month with growth above 4%. Since the post-pandemic rebound began in April 2020, construction prices have risen 38.3%.
Rivera-Montañez said rising costs for metals, wood and cement, with recent monthly increases of 3% to 7%, are affecting project budgets. New 50% tariffs on steel and aluminum are adding additional pressure, he said, pushing up prices for materials tied to those commodities.
He said these conditions are already affecting project planning, leading firms to adjust timelines and adopt mitigation strategies.
