Construction input prices are rising across the board, pointing to renewed inflationary pressure across the building sector. Overall, these increased 1.7% month-over-month in April, with the year-over-year comparison up by a larger 7%, according to an analysis of U.S. Bureau of Labor Statistics data by the Associated Builders and Contractors.
Also, nonresidential input prices rose 1.8% on the month and 7.4% annually.
Energy inputs were the primary driver of the monthly increase, as tensions in the Middle East continue. Crude petroleum prices surged 11.3% in April and are up 61.8% year-over-year. Natural gas rose 4.9% on the month, while unprocessed energy materials increased 9.2%. Energy-related inputs remain structurally elevated, with some categories more than doubling since 2020.
Metals also contributed to upward pressure. Hot-rolled steel bars, plates and shapes rose 4.1% in April and are up 22.1% year-over-year. Steel mill products increased 13.3% annually, while iron and steel rose 10.4%. Fabricated structural metals posted steady gains as well.
While some materials, including gypsum and insulation, remain flat or slightly negative year-over-year, the broader trend reflects selective inflation concentrated in energy- and metals-intensive inputs rather than uniform commodity escalation.
"Input prices have now risen more during the first four months of 2026 (6.2%) than over the prior three years (4.8%)," ABC Chief Economist Anirban Basu said.
"While much of the recent rise can be traced to soaring oil prices, escalation was widespread in April, with tariff-affected materials like iron and steel posting particularly large price increases."
At the same time, contractor backlog has improved modestly, though gains are increasingly concentrated in data center-related construction.
ABC's Construction Backlog Indicator rose to 8.8 months in April, reflecting slight monthly and year-over-year increases. However, improvements were disproportionately driven by larger contractors with exposure to data center development.
Firms tied to data center and digital infrastructure projects continue to report stronger pipeline growth than those focused on traditional commercial construction. Smaller contractors and non-data center segments remain comparatively softer, underscoring a bifurcated demand environment, ABC said.
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