The Daily Dig
Construction input prices climbed 1.2% in August compared to July, according to an Associated Builders and Contractors analysis of Bureau of Labor Statistics data released September 10, 2026. Nonresidential construction input prices matched that pace, also rising 1.2% for the month.
Sticker Shock, Again:
The annual numbers tell a tougher story. Overall construction input prices are 8.9% higher than a year ago. Nonresidential inputs are up 8.8%.
ABC Chief Economist Anirban Basu said the August increase hit materials broadly, not just a few categories.
Iron and steel, softwood lumber, switchgear, and copper wire and cable have all cleared double-digit growth over the past year. A handful of metal derivatives landed in that same range, according to Basu.
Energy's Mixed Bag:
Energy prices split in different directions last month. Crude petroleum climbed 5.2%. Unprocessed energy materials rose 1.5%. Natural gas moved the other way, falling 11.6%.
Basu pointed to the escalating trade war with Canada as part of the pressure, along with oil prices he said have climbed back above $100 per barrel.
Contractors are still reporting confidence in their margins, according to ABC's Construction Confidence Index. Basu expects that confidence to get tested if this pricing pace continues over the next several months.
Snapshot:
Report: Construction input prices, August 2026
Source: Associated Builders and Contractors, analysis of U.S. Bureau of Labor Statistics Producer Price Index data
Release Date: September 10, 2026
Overall Construction Input Prices (Month-over-Month): +1.2%
Nonresidential Construction Input Prices (Month-over-Month): +1.2%
Overall Construction Input Prices (Year-over-Year): +8.9%
Nonresidential Construction Input Prices (Year-over-Year): +8.8%
Crude Petroleum Prices (Month-over-Month): +5.2%
Unprocessed Energy Materials Prices (Month-over-Month): +1.5%
Natural Gas Prices (Month-over-Month): -11.6%
Materials Up More Than 10% Year-over-Year: Iron and steel, softwood lumber, switchgear, copper wire and cable, several derivative metal products
Analyst: Anirban Basu, ABC Chief Economist
TheJobWalk Thoughts
An 8.9% annual increase is an aggregate number, not a project-specific one, but it's still a useful gut check for anyone comparing a current estimate against pricing from a year ago. Steel and copper wire and cable are both running above 10% year over year, according to Basu, which makes metals-heavy scopes worth a second look before a number gets locked into a bid.
Tariff pressure in general tends to hit material availability and lead times before it shows up as a line-item price change, which is standard procurement behavior, not something specific to this report. That's worth keeping in mind for anyone sourcing steel or switchgear right now. Locking in commitments earlier rather than later is a reasonable hedge given what Basu is describing, even without a guarantee of where prices go next.
Basu's own framing is notable: contractors are still confident in their margins, but he expects sustained input cost escalation to weigh on profitability over the next several months. That's not a claim that margins have already taken a hit. It's a warning that the current optimism may not hold if this pricing trend continues. Worth revisiting escalation clauses on anything bidding soon, while there's still time to build in protection rather than react after the fact.
Source: Associated Builders & Contractors
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