“Construction input prices surged again in April,” said Anirban Basu, chief economist for Associated Builders and Contractors, regarding ABC’s analysis of Producer Price Index data published by the U.S. Bureau of Labor Statistics this morning.
Nonresidential construction input prices increased 1.8% for the month.
Overall construction input prices are 7.0% higher than one year ago, while nonresidential construction input prices are 7.4% higher.
Prices increased in all three energy subcategories last month. Crude petroleum prices increased 11.3%, while unprocessed energy materials and natural gas prices were up 9.2% and 4.9%, respectively, in April.
“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,” Basu continued.
“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,” Basu said, adding that these cost pressures will likely weigh on construction activity over the coming months.
