Construction input prices increased slightly by 0.1% in August, according to a recent Associated Builders and Contractors (ABC) analysis of U.S. Bureau of Labor Statistics’ Producer Price Index data.

Nonresidential construction input prices increased 0.2% for the month. Overall construction input prices are now 0.7% lower than they were a year ago, while nonresidential construction input prices are down by 0.9%. 

“Construction input prices are now down almost a full percentage point over the past year,” ABC Chief Economist Anirban Basu said. “This is a welcome development for contractors, a plurality of whom now expect their profit margins to contract over the next six months, according to ABC’s Construction Confidence Index. Moderating materials price escalation, along with easing labor constraints and the near certainty that the Federal Reserve will begin lowering interest rates at its next meeting, should provide some relief to contractors over the next several months.”

This is now the second consecutive month for increases following a two-month streak of declines through the spring. The price of concrete products dropped 0.2%. Softwood lumber was up by 3.1%. Insulation materials prices remained flat and Iron and Steel prices fell by 1.7%. 

The ABC analysis of July construction input price data can also be found here.