Construction Input Prices Up Slight But Tariff Impacts Slowing

by David Flaherty | 28 February 2026 1:15 pm

[1]

Construction input prices increased 0.7 percent in January compared to the previous month, according to an Associated Builders and Contractors (ABC) analysis of the U.S. Bureau of Labor Statistics Producer Price Index data. Nonresidential construction input prices increased 0.6 percent for the month.
Overall construction input prices are 2.3 percent higher than a year ago, while nonresidential construction input prices are 2.9 percent higher. Prices increased in two of three energy categories last month. Crude petroleum and unprocessed energy materials prices were up 1.8 percent and 0.4 percent, respectively, while natural gas prices were down 2.9 percent in January.
Iron and steel were up 2.2 percent in January and up 15.5 percent year over year. Other materials include construction machinery[2] and equipment (down 0.5 percent in January and up 4.7 percent y/y), copper wire and cable (up 5 percent in Januaryand up 27.3 percent y/y), fabricated structural metal products (up 0.5 percent in January and 8.6 y/y), hot rolled steel bars, plates, and structural shapes (up 0.2 percent in January and 13 percent y/y), insulation materials (down 0.1 percent in January and down 0.5 percent y/y), and steel mill products (up 1.1 percent in January and 20.7 percent y/y).
“Nonresidential construction input prices rebounded in January, surging at a blistering 7.1 percent annualized
rate for the month,” said ABC chief economist Anirban Basu. “While this sharp monthly rise can be traced to significant increases in prices for tariff-affected products like copper wire and cable, iron, steel, and industrial controls equipment, aggregate input price escalation is not particularly concerning right now. Nonresidential materials prices are up just 2.9 percent over the past year and have been virtually flat over the past several months, rising just 0.2 percent since September despite some large monthly fluctuations.
“Trade policy may continue to put upward pressure on certain input prices, especially those subject to the large Section 232 tariffs,” said Basu. “Even so, input escalation is unlikely to rise too sharply as long as energy prices remain tame and demand remains subdued. Contractor sentiment seems to reflect this; optimism regarding profit margins improved in January, according to ABC’s Construction Confidence Index[3], although it remains lower than one year ago.”

Source URL: https://www.metalconstructionnews.com/news/construction-input-prices-january-2026/

---