Construction material prices climbed 0.2% in August and are up 2.3% on a year-over-year basis, according to Associated Builders and Contractors. Prices in August were 43% higher than in February 2020.
Nonresidential construction material prices rose 0.2% from July to August and increased 2.6% compared with one year ago. Softwood lumber prices are up 5.2% year over year and 0.6% from July to August. Iron and steel prices are up 9.2% year over year and 1.1% for the month. Natural gas fell 2.8% from July to August and is up 42.3% year over year. Crude petroleum fell 2.8% for the month and is down 13.5% year over year.
“Construction materials prices rose modestly in August, although the increase would have been larger if not for declining oil and natural gas prices,” said ABC Chief Economist Anirban Basu. “Prices rose at an especially rapid pace in some of the categories most affected by tariffs. Iron and steel prices, for instance, are now up 9.2% on a year-over-year basis, while copper wire and cable prices are up 13.8%. Even though nonresidential input prices have risen at a 5.3% annualized rate in 2025, contractors remain broadly optimistic about their profit margins over the next six months, according to ABC’s Construction Confidence Index.”
