A new analysis of U.S. Bureau of Labor Statistics’ Producer Price Index data from the Associated Builders and Contractors (ABC) has show construction input to have decreased by 0.9% for the month of September. Nonresidential construction input prices also decreased 0.9% for the month.

Prices of concrete products were up 0.3% and steel miil products went down 1.3%. Gypsum products also rose 0.6% in September. Overall construction input prices are now 1.9% lower than a year ago, while nonresidential construction input prices are 2.1% lower.

"The decline in construction input costs observed in September was almost entirely due to a large decrease in oil prices," ABC Chief Economist Anirban Basu said. 'Certain materials, like gypsum, fabricated structural-metal products, asphalt and lumber exhibited sizable price increases for the month."

"While domestic freight rates are low by historical standards, elevated global container-shipping rates and emerging supply chain issues could put upward pressure on materials prices in the coming months," he continued. "This represents a cause for concern for contractors, many of whom expect their profit margins to contract over the next six months, according to ABC’s Construction Confidence Index."

The ABC analysis of August's construction input price data can also be found here.