Construction input prices declined 0.6% in December, with nonresidential input prices down 0.7%, according to an Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics Producer Price Index data. Overall input prices remain 2.8% higher than a year ago, while nonresidential prices are up 3.2%.
ABC Chief Economist Anirban Basu said the monthly decline provides modest relief, but cost pressures persist for materials exposed to tariffs. Copper wire and cable prices rose 4.6% in December and are up more than 22% year over year, while primary nonferrous metals prices have increased nearly 62% over the past 12 months.
Basu added that prices for materials less affected by tariffs, such as asphalt and crushed stone, are likely to remain more stable due to softer construction demand, and contractor sentiment remains steady.
