ConDig (14-Nov-24).  US construction input prices edged up 0.3% in October compared with the month prior on higher energy costs, according to the Associated Builders and Contractors (ABC) analysis of the U.S. Bureau of Labor Statistics’ Producer Price Index data.

Prices rose in all three energy subcategories last month, with natural gas prices shooting up 29.3%, unprocessed energy materials prices jumped 9.9% and crude petroleum prices increased by 7.3%. 

Nonresidential construction input prices also increased 0.3% for the month.

However, overall construction input prices are 0.2% lower than a year ago, while nonresidential construction input prices are 0.5% lower.

“Higher energy prices drove the increase in construction input prices observed in October,” said ABC chief economist Anirban Basu. 

“While prices for a few other materials, like concrete and copper products, also rose for the month, overall input prices are lower than they were one year ago and have fallen 5% since reaching an all-time high in June 2022.”

Basu also noted that it was unclear if prices would remain as stable heading into next year after the Trump administration takes charge in January. 

“The next administration’s trade policy increases uncertainty regarding construction materials costs. Beyond the implications of potential tariffs, input prices may rise in the short term if purchasers rush to import materials prior to the implementation of those policies. As of October, contractors expected their profit margins to expand through the first quarter of 2025, according to ABC’s Construction Confidence Index. That portion of the index will bear close watching as trade policy shifts in the coming months.”