Construction Materials Prices Jump 2.2% in September, Up 11.2% Year Over Year

Construction input prices increased 2.2% in September compared to the previous month, according to an Associated Builders and Contractors analysis of the U.S. Bureau of Labor Statistics’ Producer Price Index data released today. Nonresidential construction input prices increased 2.3% for the month.

Both overall and nonresidential construction input prices rose 11.2% between September 2025 and September 2026. Crude petroleum and unprocessed energy materials prices increased 28.3% and 22.2%, respectively, while natural gas prices increased 5.1% for 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 1 in 4 ABC contractors expect their profit margins to contract over the next six months, according to ABC’s Construction Confidence Index.”