While construction input prices decreased 0.6% in December compared to the previous month, according to an analysis of U.S. Bureau of Labor Statistics’ Producer Price Index data by Associated Builders and Contractors (Washington, D.C.), overall construction input prices were 2.8% higher in 2025 than the previous year. Nonresidential construction input prices decreased 0.7% in December but were up 3.2% for all of 2025.
ABC officials blame tariffs for the year-over-year increase.
“Construction materials prices posted a welcome decline in December, yet key inputs are still experiencing rapid escalation,” ABC Chief Economist Anirban Basu said. “This is especially true for materials most exposed to tariffs. Copper wire and cable prices, for instance, jumped an incredible 4.6% in December and are up more than 22% year over year, and prices for primary nonferrous metals are up nearly 62% over the past 12 months.”
That said, seven in 10 ABC contractor members expect their profit margins to remain stable or grow over the next two quarters, according to ABC’s Construction Confidence Index.
