Nonresidential Construction Input Prices Climbed 2.2% in September
Key Highlights
- Construction input prices increased by 2.2% last month, with nonresidential construction seeing a 2.3% rise;
- Energy materials like crude petroleum and unprocessed energy saw price jumps of over 22%, significantly impacting construction costs;
- Overall construction input prices have risen 11.2% from September 2025 to September 2026, the largest increase in nearly four years;
- More than 25% of ABC contractors expect profit margins to contract over the next six months due to rising material costs.
WASHINGTON, Oct. 15 — Construction input prices increased 2.2% in September compared to the previous month, according to an Associated Builders and Contractors (ABC) analysis of the U.S. Bureau of Labor Statistics’ Producer Price Index (PPI) data released today.
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 1 in 4 ABC contractors now expect their profit margins to contract over the next six months, according to ABC’s Construction Confidence Index.”
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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.
Associated Builders and Contractors 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. Visit us at abc.org.