Contractors Hot Line is part of the Catalyst Communications Network publication family.
Contractors Hot Line is part of the Catalyst Communications Network publication family.
Construction input prices rose by 0.3% in October compared to the previous month, as reported by Associated Builders and Contractors (ABC), following their analysis of the latest U.S. Bureau of Labor Statistics’ Producer Price Index data.
Non-residential construction input prices also saw a 0.3% increase during the same period, according to the data released today.
The rise in input prices was largely influenced by increases across all energy-related categories. Natural gas prices surged 29.3%, unprocessed energy materials increased 9.9%, and crude petroleum saw a 7.3% hike.
Despite these monthly increases, construction input prices remain 0.2% lower than they were in October 2022, and nonresidential input prices are down 0.5% compared to last year.
“Higher energy prices drove the increase in construction input prices observed in October,” ABC Chief Economist Anirban Basu said.
“While prices for a few other materials, like concrete and copper products, also rose for the month, overall input prices are lower than they were one year ago and have fallen 5% since reaching an all-time high in June 2022.”
“Heading into 2025, it’s unclear if prices will remain so well-behaved,” Basu said.
“The next administration’s trade policy increases uncertainty regarding construction materials costs. Beyond the implications of potential tariffs, input prices may rise in the short term if purchasers rush to import materials prior to the implementation of those policies."
"As of October, contractors expected their profit margins to expand through the first quarter of 2025, according to ABC’s Construction Confidence Index. That portion of the index will bear close watching as trade policy shifts in the coming months," Basu added.