Construction Material Prices Increase 11.2% in 12 Months - NJBIA
Construction input prices increased 2.2% in September compared to the previous month, and are up 11.2% compared to September 2025, according to an Associated Builders and Contractors analysis of the U.S. Producer Price Index data.
Nonresidential Construction Input Prices
Nonresidential construction input prices increased 2.3% for the month. Both overall and nonresidential construction input prices rose 11.2% between September 2025 and September 2026.
Crude petroleum and unprocessed energy materials prices increased 28.3% and 22.2%, respectively, while natural gas prices increased 5.1% for the month.
"Construction input prices have risen more than 11% over the past 12 months, the largest year-over-year increase in nearly four years," said Anirban Basu, chief economist for the ABC, a national trade association representing construction industry contractors, subcontractors, suppliers and related firms.
"While higher fuel prices brought about by the conflict in Iran have driven a substantial portion of the increase, prices for tariffed materials like iron, copper and other metal products continue to rise rapidly," Basu said.
"In light of this precipitous and ongoing increase in materials prices, it is unsurprising that more than 1 in 4 ABC contractors expect their profit margins to contract over the next six months, according to ABC’s Construction Confidence Index."
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