Construction input prices rose 0.7% in January compared with the previous month, according to an analysis by Associated Builders and Contractors of U.S. Bureau of Labor Statistics Producer Price Index data.
Nonresidential construction input prices increased 0.6% for the month. Overall construction input prices are up 2.3% compared with January 2025, while nonresidential construction input prices increased 2.9% year over year.
Energy prices were mixed in January. Crude petroleum prices increased 1.8% and unprocessed energy materials rose 0.4%, while natural gas prices declined 2.9%.
ABC Chief Economist Anirban Basu said nonresidential construction input prices rose at a 7.1% annualized rate for the month, driven in part by higher prices for materials affected by tariffs, including copper wire and cable, iron and steel, and industrial control equipment.
Despite the increase, Basu said overall materials price growth remains relatively moderate, noting nonresidential materials prices have risen just 0.2% since September.
Trade policy could continue to place upward pressure on certain materials, particularly those subject to Section 232 tariffs, Basu said. However, he noted input price increases may remain limited if energy prices stay stable and construction demand remains subdued.
