Construction input prices decreased -1.1% in June compared to the previous month, according to an Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics’ Producer Price Index data released today. Nonresidential construction input prices also decreased -1.1% for the month.

Overall construction input prices are +7.6% higher than one year ago, while nonresidential construction input prices are +7.4% higher. Prices decreased in two of the three energy subcategories last month. Crude petroleum prices declined -12.1%, and unprocessed energy materials fell -8.1%. Natural gas prices were up +16.6% in June.

“Aggregate construction input prices receded in June due to the steep decline in oil prices that occurred throughout the month,” said ABC Chief Economist Anirban Basu, in the press release. “Despite that decline, however, ongoing materials price escalation is likely over the coming months. The conflict in Iran has resumed, triggering a roughly 15% rebound in oil prices, and tariff-affected commodities like iron, steel and copper continue to experience steep price increases.

“While contractors remain optimistic about their margins, according to ABC’s Construction Confidence Index, higher input costs will likely weigh on profitability during the second half of 2026," said Basu.