Material Prices Dropped in June, But Future Escalation Likely
Steel prices continue to rise due to tariffs.
Overall construction materials prices declined 1.1% in June, month-over-month, according to Producer Price Index data recently released by the U.S. Bureau of Labor Statistics. On a yearly basis, prices are 7.6% higher than those recorded in June 2025.
Input prices for non-residential construction followed a similar trend, down 1.1% since May but up 7.4% year-over-year. Monthly crude petroleum prices plummeted 12.1%, while yearly prices still stand 41.3% higher than last June. Prices for products affected by tariffs, such as hot rolled steel bars, plates and structural shapes and steel mill products increased for the month at a rate of 5.8% and 3.6%, respectively.
“Aggregate construction input prices receded in June due to the steep decline in oil prices that occurred throughout the month,” Anirban Basu, chief economist at Associated Builders and Contractors, said in a statement. “Despite that decline, however, ongoing materials price escalation is likely over the coming months.”
Going forward, Basu adds, “Higher input costs will likely weigh on profitability during the second half of 2026.”
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