New York Construction Report staff writer
Construction input prices fell 0.6% in December from the previous month, according to an Associated Builders and Contractors (ABC) analysis of U.S. Bureau of Labor Statistics data released Wednesday. Nonresidential construction input prices decreased 0.7% over the same period.
Despite the monthly declines, overall construction input costs are 2.8% higher than a year ago, while nonresidential input prices are up 3.2%. Energy costs were mixed: natural gas prices rose 34.8%, and unprocessed energy materials climbed 5.5%, while crude petroleum fell 2.7% in December.
“Construction materials prices posted a welcome decline in December, yet key inputs are still experiencing rapid escalation,” said ABC Chief Economist Anirban Basu. He noted that materials exposed to tariffs, such as copper wire and cable, surged 4.6% in December and are up more than 22% over the past year. Prices for primary nonferrous metals increased nearly 62% year over year.
Basu said materials less affected by tariffs, such as asphalt and crushed stone, are likely to remain stable in the coming months due to soft demand for construction services.
“While that may limit increases in overall materials prices, trade policy will continue to put upward pressure on certain materials,” he said.
ABC’s Construction Confidence Index indicates that contractor optimism remains high, with seven in 10 members expecting profit margins to remain stable or grow over the next two quarters.
