C
onstruction input prices rose 0.3% in October compared to the previous month, according to an analysis of Producer Price Index data from the U.S. Bureau of Labor Statistics. This increase was driven by higher energy costs, with natural gas prices surging 29.3%, unprocessed energy materials increasing 9.9%, and crude petroleum rising 7.3%. Despite these monthly gains, overall construction input prices are down 0.2% compared to a year ago.

    "The October price increases were largely due to higher energy prices," said ABC Chief Economist Anirban Basu. "While some other materials like concrete and copper products also saw price hikes, overall input costs remain below last year's levels and have declined 5% since peaking in June 2022."

    Looking ahead to 2025, Basu noted that uncertainty surrounding trade policies could impact construction material costs. Potential tariffs could lead to higher prices if contractors preemptively import materials before policies are implemented. The Construction Confidence Index suggests contractors anticipate profit margin growth through the first quarter of 2025, but this will be closely monitored as trade policies evolve in the coming months.