Construction input prices increased 2.2% in September compared to the previous month, according to a new analysis by Associated Builders and Contractors (ABC) of the U.S. Bureau of Labor Statistics’ Producer Price Index data. 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 ABC Chief Economist Anirban Basu. “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.
“In light of this precipitous and ongoing increase in materials prices, it is unsurprising that more than one in four ABC contractors expect their profit margins to contract over the next six months, according to ABC’s Construction Confidence Index.”
Visit abc.org/economics for the Construction Backlog Indicator and Construction Confidence Index, plus analysis of spending, employment, job openings and the Producer Price Index.
About Associated Builders and Contractors
Associated Builders and Contractors (ABC) is a national construction industry trade association established in 1950 with 67 chapters and 24,000 members. Founded on the merit-shop philosophy, ABC helps members offer a robust employee value proposition, develop people, win work, and deliver that work safely, ethically and profitably for the betterment of the communities in which ABC and its members work.
 of the U.S. Bureau of Labor Statistics’ Producer Price Index (PPI) data. Nonresidential construction input prices increased 2.3% for the month.){kind=link}