On a yearly basis, prices have increased 7.4% since last July
Overall construction materials prices rose 0.1% in July, according to the recently released U.S. Bureau of Labor Statistics’ Producer Price Index data. On a yearly basis, prices increased 7.4%.
“Construction input prices were virtually unchanged in July, but that relatively tame behavior can be traced to the dip in fuel prices that occurred at the start of the month,” Anirban Basu, chief economist at Associated Builders and Contractors, said in a statement. “Given the subsequent rebound in oil prices and ongoing increases in certain materials prices, such as lumber and iron and steel, materials prices will almost certainly continue to climb in the months to come.”
Nonresidential construction inputs have been closely following a broader trend in overall input prices, rising 0.1% month-over-month and up 7.2% since July 2025.
Steel prices continue to rise due to tariffs; iron and steel prices increased 2.4% since June and 17.6% yearly, while steel mill prices rose 3.9% monthly and 22.5% yearly. Copper wire and cable prices increased just 0.2% for the month, but are still 17.9% above July 2025’s prices.
“Construction firms are being hit with outsized cost increases for a host of materials and also labor,” Ken Simonson, chief economist at Associated General Contractors of America, said in a statement. “Unless there is relief from tariffs or additional funding for highway and transit projects, both private and public construction work face cutbacks.»
Looking for quick answers on construction and engineering topics?
Try Ask ENR, our new smart AI search tool. Ask ENR →
