US Construction Input Prices Rise 2.8% Year-Over-Year in December

A closer look at the US Bureau of Labor Statistics (BLS) Producer Price Index for December 2025, with analysis from Associated Builders and Contractors (ABC), shows that overall construction input prices declined 0.6%. Nonresidential construction input prices fell 0.7%.

Year-over-year, overall construction input prices were up 2.8%, while nonresidential construction input prices increased 3.2%.

Energy input prices were mixed. Prices rose in two of three energy categories, with natural gas prices jumping 34.8% and unprocessed energy materials up 5.5%. Crude petroleum prices declined 2.7% during the month.

Commenting on the report, ABC Chief Economist Anirban Basu said:

“Construction materials prices posted a welcome decline in December, yet key inputs are still experiencing rapid escalation. 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.

Prices for commodities less exposed to tariffs, like asphalt or crushed stone, will likely remain tame 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. This has not significantly dimmed contractor optimism; 7 in 10 ABC members expect their profit margins to remain stable or grow over the next two quarters, according to ABC’s Construction Confidence Index.”