Construction Input Prices Surge 9.6% in May, Fastest Since Pandemic as Fuel and Metals Jump
Updated
Updated · Construction Dive · Jun 12
Construction Input Prices Surge 9.6% in May, Fastest Since Pandemic as Fuel and Metals Jump
3 articles · Updated · Construction Dive · Jun 12
Summary
Construction input costs rose 2.6% in May and 9.6% from a year earlier, marking the fastest annual increase since the pandemic and extending monthly gains through all of 2026.
Fuel and metals drove the jump, with oil prices lifted by the Iran conflict and tariff-sensitive materials still climbing; AGC said input costs are rising about twice as fast as the 4.2% consumer inflation rate.
Copper wire and cable prices climbed 7.3% on the month and 24.2% on the year, while iron and steel rose 1.4% in May and 7% from a year ago.
Contractors face tighter margins because material costs are outpacing what firms can charge for new work, though ABC said many still expect profits to improve over the next six months despite high borrowing costs.