Overall construction input prices are 7.6 percent higher than one year ago, while nonresidential construction input prices are 7.4 percent higher. Prices decreased in two of the three energy subcategories last month. Crude petroleum prices declined 12.1 percent, and unprocessed energy materials fell 8.1 percent. Natural gas prices were up 16.6 percent in June.

Aggregate construction input prices receded in June due to the steep decline in oil prices that occurred throughout the month. Despite that decline, however, ongoing materials price escalation is likely over the coming months. The conflict in Iran has resumed, triggering a roughly 15 percent rebound in oil prices, and tariff-affected commodities like iron, steel and copper continue to experience steep price increases.

While contractors remain optimistic about their margins, according to ABC’s Construction Confidence Index, higher input costs will likely weigh on profitability during the second half of 2026.