Construction Input Costs Remain Sharply Higher than a Year Ago

The producer price index for inputs to new nonresidential construction climbed 7.1 percent from June 2025 to June 2026, despite dipping 0.5 percent last month, according to an analysis by the Associated General Contractors of America of government data released on July 15.

The 7.1 percent annual increase in construction input prices was roughly double the 3.5 percent increase in contractors' bid prices for new nonresidential buildings, suggesting contractors continue to absorb much of the increase in materials costs.

“Although fuel prices dropped in June, they remained far higher than a year earlier,” said Ken Simonson, the association’s chief economist. “In addition, steep tariffs on aluminum, steel and products containing copper have continued to push up construction costs."

View the full analysis at news.agc.org/economics.