According to an Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics Produce Price Index data, construction input prices were up 1.7 percent in April over the previous month, with non-residential construction input prices up 1.8 percent. This means that overall, construction input prices are 7 percent higher than a year ago, with non-residential construction input prices 7.4 percent higher.
Crude petroleum increased 11.3 percent, unprocessed energy materials were up 9.2 percent, and natural gas prices were up 4.9 percent for the month.
“Construction input prices surged again in April,” said ABC Chief Economist Anirban Basu. “Input prices have now risen more during the first four months of 2026 (6.2%) than over the prior three years (4.8%). While much of the recent rise can be traced to soaring oil prices, escalation was widespread in April, with tariff-affected materials like iron and steel posting particularly large price increases.
“In addition to the direct impact of this reemerging materials price escalation, too-hot inflation data coupled with upbeat labor market indicators suggest that the Federal Reserve is unlikely to cut rates this year,” said Basu. “While contractors remain busy, according to ABC’s Construction Backlog Indicator, these cost pressures will likely weigh on construction activity over the coming months.”
