11/09/2026
Construction input prices jumped 1.2% month over month in August and now sit about 8.9% higher than August 2025, according to an analysis of the latest U.S. Bureau of Labor Statistics data by Associated Builders and Contractors.
“Ongoing input price escalation is likely to weigh on profitability over the next several months,” said Anirban Basu, ABC chief economist. “This is especially true given recent escalation in the trade war with Canada and the fact that oil prices have jumped back above $100 per barrel.”
The higher material prices are making more developers slam the brakes on construction activity, according to Associated General Contractors of America.
“Construction firms are being squeezed by tariff- and war-induced materials cost increases, even as they boost wages to attract personnel,” said Ken Simonson, AGC chief economist, in a news release. “Those cost increases, according to our latest survey, are a major reason project owners are cancelling, postponing or scaling back projects.”
Prices for copper, lumber, switchgear and several derivative metal products posted 10% or more increases year over year since August 2025, said Anirban Basu, chief economist at Associated Builders…
