Construction input prices increased 0.2% in June compared to the previous month, according to an Associated Builders and Contractors’ analysis of U.S. Bureau of Labor Statistics’ Producer Price Index data. Nonresidential construction input prices increased 0.3% for the month.
Overall construction input prices are 2.1% higher than a year ago, while nonresidential construction input prices are 2.5% higher. Prices increased in 2 of the 3 energy categories last month. Natural gas and unprocessed energy materials prices were up 5.9% and 1.4%, respectively, while crude petroleum prices decreased 0.1% in June.
“Nonresidential input price escalation has accelerated in 2025, with prices rising at a rapid 6.0% annualized rate through the first half of the year,” said ABC Chief Economist Anirban Basu. “Despite this acceleration, prices for many of the inputs most directly affected by tariffs, like iron and steel, declined in June. While it is unclear how and when trade policy will affect construction materials prices, the impact was evident in June’s Consumer Price Index release; prices for core goods excluding automobiles rose at the fastest pace since late 2021.”
