Market forecast: Weaker demand helps constrain cost inflation

By Pablo Cristi Worm 2026-06-08T06:00:00

Source: Shutterstock

Building costs are set to rise through 2026 with inflation into 2027, due to global energy shocks, but subdued demand is offsetting inflation

01 / Summary

Tender price index ▲

Aecom’s tender price index is forecast to increase by 3.6% in 2026, easing slightly to 3.5% in 2027, as subdued current demand leads to thinner order books for 2027 and 2028.

Building cost index ▲

Aecom’s building cost index rose by 3.4% in Q1 2026 and is expected to rise steadily throughout 2026, peaking at 6.0% in Q1 2027.

Consumer prices index ▲

Producer input prices rose by 7.7% in the year to April 2026, the sharpest increase since the inflationary shock following Russia’s invasion of Ukraine.

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