Construction input prices rose 2.2% in March compared to the previous month, according to an analysis by the Associated Builders and Contractors using U.S. Bureau of Labor Statistics data. Nonresidential input prices increased 2.3% for the month.
Year over year, overall construction input prices are up 4.8%, while nonresidential prices have climbed 5.4%.
Energy prices were mixed in March. Natural gas and unprocessed energy materials declined, while crude petroleum prices increased more than 20%, contributing to higher overall costs.
ABC Chief Economist Anirban Basu said rising oil prices, tied in part to geopolitical tensions, were a key factor behind the monthly increase. Higher diesel costs are also expected to push up transportation expenses, adding pressure across material categories.
Despite rising costs, contractors have remained relatively optimistic about profit margins in recent months, though continued volatility in energy markets could affect that outlook.
Read more in the March reading of the ABC Construction Confidence Index.
