Construction Input Prices Surge in April Driven by Rising Energy Costs
Key Highlights
- Construction input prices increased by 1.7% in April, with energy subcategories experiencing notable price hikes
- Year-over-year construction input costs are up 7.0%, impacting project budgets and profitability
- Crude petroleum prices rose by 11.3%, significantly contributing to overall cost increases in construction materials
WASHINGTON, DC — Producer Price Index data released on May 13th by the US Bureau of Labor Statistics shows an increase of 1.7% in April compared to the previous month. Nonresidential construction input prices increased 1.8% for the month.
Overall construction input prices are 7.0% higher than at this time last year, with nonresidential construction input prices 7.4% higher. Prices increased in all three energy subcategories last month. Crude petroleum prices increased 11.3%, while unprocessed energy materials and natural gas prices were up 9.2% and 4.9%, respectively, in April.
“Construction input prices surged again in April,” said Associated Builders and Contractors Chief Economist Anirban Basu. “Input prices have now risen more during the first four months of 2026 (6.2%) than over the prior three years (4.8%). While much of the recent rise can be traced to soaring oil prices, escalation was widespread in April, with tariff-affected materials like iron and steel posting particularly large price increases.
“In addition to the direct impact of this reemerging materials price escalation, too-hot inflation data coupled with upbeat labor market indicators suggest that the Federal Reserve is unlikely to cut rates this year,” said Basu. “While contractors remain busy, according to ABC’s Construction Backlog Indicator, these cost pressures will likely weigh on construction activity over the coming months.”
Visit abc.org/economics for the Construction Backlog Indicator and Construction Confidence Index, plus analysis of spending, employment, job openings and the Producer Price Index.