The Daily Dig
Construction input prices rose 2.2% in September from the month before, according to an Associated Builders and Contractors analysis of federal Producer Price Index data. The Bureau of Labor Statistics released that data on October 15, 2026.
Over the past year, overall and nonresidential input prices are both up 11.2%.
Nonresidential input prices climbed 2.3% for the month, slightly ahead of the overall figure.
On the energy side, natural gas prices rose 5.1% in September.
ABC’s chief economist put the annual number in perspective. “Construction input prices have risen more than 11% over the past 12 months, the largest year-over-year increase in nearly four years,” said Anirban Basu.
Fuel to the Fire
According to Basu, higher fuel prices tied to the conflict in Iran have driven a substantial portion of the increase.
Heavy Metal
Fuel isn’t carrying the whole load, though. Basu said prices for tariffed materials like iron, copper and other metal products continue to rise rapidly.
Contractors are already bracing for the effect on their bottom lines. “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,” Basu said.
Snapshot:
Report: ABC analysis of BLS Producer Price Index data
Release Date: October 15, 2026
Monthly Change, Overall Inputs: +2.2% (September 2026)
Monthly Change, Nonresidential Inputs: +2.3%
Annual Change, Overall and Nonresidential: +11.2% (September 2025 to September 2026)
Natural Gas, Monthly: +5.1%
Factors Cited: Higher fuel prices tied to the conflict in Iran; tariffed iron, copper and other metal products
Historical Context: Largest annual increase in nearly four years, per Basu
Contractor Outlook: More than 1 in 4 ABC contractors expect margins to contract over the next six months (ABC Construction Confidence Index)
Source Quoted: Anirban Basu, ABC Chief Economistmist
TheJobWalk Thoughts
An 11.2% annual jump means a bid from a year ago that’s still waiting on award was likely priced on materials costs that no longer exist. Subs with scopes heavy on iron and copper should push for escalation clauses and shorter quote windows before they sign.
Fuel is the sneakier problem, since it rides along on every delivery ticket and every hour of equipment time. Even scopes that never touch steel will feel it.
GCs should note that more than 1 in 4 ABC contractors expect thinner margins. Strained margins often surface as change order fights, so vet sub finances before award.
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