California Construction News staff writer
Construction input prices in the United States increased 2.2 per cent in September compared with August, while prices for inputs used in non-residential construction rose 2.3 per cent, according to an analysis by Associated Builders and Contractors (ABC).
Both overall construction input prices and non-residential construction input prices increased 11.2 per cent between September 2025 and September 2026, based on U.S. Bureau of Labor Statistics Producer Price Index data released in October.
Crude petroleum prices increased 28.3 per cent in September, while prices for unprocessed energy materials rose 22.2 per cent. Natural gas prices increased 5.1 per cent during 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 one in four ABC contractors expect their profit margins to contract over the next six months, according to ABC’s Construction Confidence Index.”
The figures reflect U.S. construction input costs rather than prices specific to California. However, increases in energy and construction materials costs can affect contractors’ project budgets and profit margins.
