Construction input prices increased 0.2 percent in August compared to the previous month, according to an Associated Builders and Contractors analysis of the U.S. Bureau of Labor Statistics’ Producer Price Index data released recently. Nonresidential construction input prices also increased 0.2 percent for the month.
Overall construction input prices are 2.3 percent higher than a year ago, while nonresidential construction input prices are 2.6 percent higher. Prices decreased in all three energy categories last month. Crude petroleum and natural gas prices were both down 2.8 percent, while unprocessed energy materials prices decreased 2.5 percent in August.
“Construction materials prices rose modestly in August, although the increase would have been larger if not for declining oil and natural gas prices,” said ABC Chief Economist Anirban Basu. “Prices rose at an especially rapid pace in some of the categories most affected by tariffs. Iron and steel prices, for instance, are now up 9.2 percent on a year-over-year basis, while copper wire and cable prices are up 13.8 percent. Even though nonresidential input prices have risen at a 5.3 percent annualized rate in 2025, contractors remain broadly optimistic about their profit margins over the next six months, according to ABC’s Construction Confidence Index.”
