Construction input prices decreased 1.1% in June compared to the previous month, according to a new analysis of U.S. Bureau of Labor Statistics’ Producer Price Index data by Associated Builders and Contractors (ABC). Nonresidential construction input prices also decreased 1.1% for the month.
For June, overall construction input prices were 7.6% higher than one year ago, while nonresidential construction input prices were 7.4% higher. Prices decreased in two of the three energy subcategories last month. Crude petroleum prices declined 12.1% and unprocessed energy materials fell 8.1%, while natural gas prices were up 16.6% in June.
“Aggregate construction input prices receded in June due to the steep decline in oil prices that occurred throughout the month,” said ABC Chief Economist Anirban Basu. “Despite that decline, however, ongoing materials price escalation is likely over the coming months. The conflict in Iran has resumed, triggering a roughly 15% rebound in oil prices, and tariff-affected commodities like iron, steel, and copper continue to experience steep price increases.
“While contractors remain optimistic about their margins, according to ABC’s Construction Confidence Index, higher input costs will likely weigh on profitability during the second half of 2026.”
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.
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