US Construction Input Prices Dip, But Long-term Trends Remain High

Construction input prices in the United States experienced a slight decline of 1.1% in June compared to the previous month, according to an analysis by the Associated Builders and Contractors (ABC) based on data from the U.S. Bureau of Labor Statistics' Producer Price Index.

The nonresidential construction input prices also decreased by 1.1% during the same period. However, when looking at the year-over-year trend, overall construction input prices are still 7.6% higher than in June last year, while nonresidential construction input prices are 7.4% higher.

The decline in construction input prices was mainly due to a steep drop in oil prices, which decreased by 12.1% in June. In contrast, natural gas prices rose by 16.6%. The ABC's Chief Economist, Anirban Basu, attributed the decrease in prices to the decline in oil prices.

However, Basu also warned that ongoing materials price escalation is likely over the coming months due to various factors such as the conflict in Iran and tariffs on commodities like iron, steel, and copper. He noted that while contractors remain optimistic about their margins, higher input costs will weigh on profitability during the second half of 2026.