Construction input prices rose 2.8% year after year in December, according to the price-production index recently released by the US Bureau of Labor Statistics. In monthly terms, prices fell by 0.6% between November and December.
In the non-residential sector, monthly input prices fell by 0.3%, while annual prices rose by 2.8%. Multifamily input prices saw a slightly larger monthly decline of 0.7%, while rising 3.2% for the year.
“Construction materials prices recorded a favorable decline in December, but key inputs are still experiencing rapid escalation,” Anirban Basu, chief economist at Associated Builders and Contractors, said in a statement.
“This is especially true for materials most exposed to tariffs,” he added. “Copper wire and cable prices, for example, rose an incredible 4.6% in December and are up more than 22% year-on-year, and prices for non-ferrous primary metals are up almost 62% over the past 12 months.”
In addition to the materials noted by Basu, other products such as output from steel mills and shapes from aluminum mills have seen steep annual price increases of 30.5% and 17%, respectively.
“Although these indices are based on selling prices of domestic producers, it is clear that high tariffs on imported metals and products are allowing US sellers to drive up the costs of construction materials and equipment,” said Ken Simonson, chief economist of the Associated General Contractors of America, in a news release. “Construction costs are certain to rise further in 2026 as long as current rates are maintained.”
