Construction input prices increased 1.2% in August from the previous month and were 8.9% higher than they were in August 2025, according to an Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics Producer Price Index data.
Lumber and wood products edged down 0.3% for the month but were up 4.8% year-over-year, while adhesives and sealants rose 1.0% in August and were 6.2% higher than in August 2025.
"Construction input prices surged again in August, and the increases were widespread across materials," said ABC Chief Economist Anirban Basu, noting that iron and steel, softwood lumber, and several other categories were up more than 10% year-over-year.
"While contractors remain optimistic about their margins, according to ABC's Construction Confidence Index, ongoing input price escalation is likely to weigh on profitability over the next several months," Basu said, pointing to renewed escalation in the trade war with Canada and oil prices back above $100 per barrel.
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