Construction input prices increased 2.6 percent in May compared with April, according to an analysis by Associated Builders and Contractors of U.S. Bureau of Labor Statistics Producer Price Index data. Nonresidential construction input prices rose 2.4 percent during the month.

On a year-over-year basis, overall construction materials prices were up 9.6 percent, while nonresidential construction input prices increased 9.7 percent.

Two of the three energy-related categories tracked by ABC posted gains in May. Crude petroleum prices climbed 11.8 percent, and unprocessed energy materials increased 6.9 percent. Natural gas prices, however, declined 18.2 percent during the month.

“Construction input prices surged again in May and are now up nearly 10 percent year over year,” said Anirban Basu, ABC chief economist. “Oil prices, pushed higher by the ongoing Iran conflict, made a significant contribution to the rise in overall materials prices, yet the greater concern is the continuing price growth in tariff-affected inputs such as iron, steel and copper.

“Contractors remain optimistic that their profit margins will expand over the next six months, according to ABC’s Construction Confidence Index. However, ongoing materials price escalation and persistently high borrowing costs could eventually put pressure on profitability.”

Visit abc.org/economics for the Construction Backlog Indicator and Construction Confidence Index, plus analysis of spending, employment, job openings and the Producer Price Index.