Construction Input Prices Dip in June Amid Oil Price Decline
Key Highlights
- Construction input prices decreased 1.1% in June, mainly due to a 12.1% drop in crude petroleum prices
- Overall construction costs are 7.6% higher than a year ago, with nonresidential construction input prices up 7.4%
- Energy subcategories showed mixed results: crude petroleum and unprocessed energy materials declined, while natural gas prices increased by 16.6%
WASHINGTON, DC — According to US Bureau of Labor Statistics’ Producer Price Index data released July 15 construction input prices decreased 1.1% in June compared to the previous month. 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. “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.
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.