Associated Builders and Contractors reported that construction input prices rose 1.7 percent in April, according to U.S. Bureau of Labor Statistics Producer Price Index data released May 13. Nonresidential construction input prices increased 1.8 percent for the month.

Overall construction input prices are now 7 percent higher than a year ago, while nonresidential input costs have climbed 7.4 percent. Energy-related categories posted broad increases in April, including an 11.3 percent jump in crude petroleum prices. Unprocessed energy materials rose 9.2 percent, while natural gas prices increased 4.9 percent.

ABC Chief Economist Anirban Basu said construction input costs have increased 6.2 percent during the first four months of 2026, exceeding the combined rise recorded over the previous three years. Basu pointed to higher oil prices and escalating costs for tariff-affected materials, including iron and steel, as major drivers behind April’s increase.

For wall and ceiling contractors, sustained escalation in steel and energy prices could increase pressure on framing, suspension systems, delivery costs and project bids. Contractors may also face tighter margins on projects with locked-in pricing or delayed procurement schedules.

Basu added that persistent inflation and strong labor market conditions could reduce the likelihood of Federal Reserve rate cuts this year. While contractors continue to report healthy backlog levels, ABC warned that ongoing material cost escalation may weigh on construction activity in the months ahead.