Construction Input Prices Decline Slightly in December, But Tariff Impacts Evident

by David Flaherty | 3 February 2026 9:22 am

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Construction input prices decreased 0.6 percent in December compared to November, according to an Associated Builders and Contractors (ABC) analysis of U.S. Bureau of Labor Statistics’ Producer Price Index data. Nonresidential construction input prices decreased 0.7 percent for the month.

Overall construction input prices are 2.8 percent higher than a year ago, while nonresidential construction input prices are 3.2 percent higher. Prices increased in two of three energy categories last month. Natural gas and unprocessed energy materials prices were up 34.8 percent and 5.5 percent, respectively, while crude petroleum prices were down 2.7 percent in December.

Iron and steel were up 5.2 percent in December and up 12.3 percent year over year. Other materials include construction machinery[2] and equipment (up 0.8 percent in December and up 5.6 percent y/y), copper wire and cable (down 4.6 percent in December and up 22.3 percent y/y), fabricated structural metal products (up 0.2 percent in December and 8.7 percent y/y), hot rolled steel bars, plates, and structural shapes (up 0.8 percent in December and 12.1 percent y/y), insulation materials (up 1.0 percent in December and 0.2 percent y/y), and steel mill products (down 6.8 percent in December and 17 percent y/y).

“Construction materials prices posted a welcome decline in December, yet key inputs are still experiencing rapid escalation,” said ABC chief economist Anirban Basu. “This is especially true for materials most exposed to tariffs. Copper wire and cable prices, for instance, jumped an incredible 4.6 percent in December and are up more than 22 percent year over year, and prices for primary non-ferrous metals are up nearly 62 percent over the past 12 months.

“Prices for commodities less exposed to tariffs, like asphalt or crushed stone, will likely remain tame in the coming months due to soft demand for construction services,” said Basu. “While that may limit increases in overall materials prices, trade policy will continue to put upward pressure on certain materials. This has not significantly dimmed contractor optimism; seven in 10 ABC members expect their profit margins to remain stable or grow over the next two quarters, according to ABC’s Construction Confidence Index[3].”

Source URL: https://www.metalconstructionnews.com/news/construction-input-prices-december-2025-2/

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