Construction Materials Prices Up 0.2% In August

Washington, DC - Construction input prices increased 0.2% in August 2025 compared to the previous month, according to an Associated Builders and Contractors analysis of the U.S. Bureau of Labor Statistics’ Producer Price Index. Nonresidential construction input prices also increased 0.2% for the month.

Overall construction input prices are 2.3% higher than a year ago, while nonresidential construction input prices are 2.6% higher. Prices decreased in all three energy categories last month. Crude petroleum and natural gas prices were both down 2.8%, while unprocessed energy materials prices decreased 2.5% in August.

“Construction materials prices rose modestly in August, although the increase would have been larger if not for declining oil and natural gas prices,” said ABC Chief Economist Anirban Basu. “Prices rose at an especially rapid pace in some of the categories most affected by tariffs. Iron and steel prices, for instance, are now up 9.2% on a year-over-year basis, while copper wire and cable prices are up 13.8%. Even though nonresidential input prices have risen at a 5.3% annualized rate in 2025, contractors remain broadly optimistic about their profit margins over the next six months, according to ABC’s Construction Confidence Index.”

About The Associated Builders And Contractors

Associated Builders and Contractors is a national construction industry trade association representing more than 23,000 members. Founded on the merit shop philosophy, ABC and its chapters help members develop people, win work and deliver that work safely, ethically and profitably for the betterment of the communities in which ABC and its members work. To learn more, visit www.abc.org.