Construction materials prices surge 2.6% in May, up nearly 10% year over year

by anthony_capkun_2 | 3 July 2026 3:00 pm

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Construction input prices increased 2.6% in May 2026 from the previous month, according to an Associated Builders and Contractors[2] analysis of U.S. Bureau of Labor Statistics[3] Producer Price Index data.

“Construction input prices surged again in May and are now up nearly 10% year over year,” said ABC chief economist Anirban Basu.

Compared to one year ago, overall construction materials prices are 9.6% higher while nonresidential construction input prices are 9.7% higher, the latter increasing 2.4% for the month.

Prices rose in two of the three energy subcategories last month. Crude petroleum prices increased 11.8% and unprocessed energy materials increased 6.9%. Natural gas prices were down 18.2% in May.

“Oil prices, pushed higher by the ongoing Iran conflict, made a significant contribution to the rise in overall materials prices, yet the greater concern is the continuing price growth in tariff-affected inputs like iron, steel, and copper,” Basu added.

While contractors remain optimistic that profit margins will expand over the next six months, according to ABC’s Construction Confidence Index, Basu believes materials price escalation and “stubbornly high borrowing costs” could eventually weigh on profitability.

Source URL: https://www.metalconstructionnews.com/news/construction-materials-prices-surge-2-6-in-may-up-nearly-10-year-over-year/

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