Builders saw slightly lower materials costs in June compared to May but prices are still highly elevated compared to a year ago. 

The producer price index for inputs to new nonresidential construction climbed 7.1% from June 2025 to June 2026, according to an analysis by the Associated General Contractors of America of recent federal data. That increase in construction input prices was roughly double the 3.5% increase in contractors’ bid prices for new nonresidential buildings, suggesting contractors are continuing to absorb costs for now. 

Fuel costs, specifically for diesel, saw the steepest increase, remaining at 65.8% above prices a year prior despite some recent relief at the pump during a lull in military operations between the U.S. and Iran in the Strait of Hormuz. 

Metals prices are also higher than a year earlier. Aluminum mill shapes prices were up 52.4% percent from June 2025, while copper and brass mill shapes increased 26.0% over the year. Steel mill products prices climbed 16.9% year over year.  

AGC’s analysis is based on prices from domestic sellers, but those firms have been largely matching the prices now charged on imported products. All three metals are subject to tariffs as high as 50% when shipped from international markets. 

“Price stability is important for contractors, project owners, investors and governments,” said Jeffrey D. Shoaf, AGC’s CEO, in a statement. “Providing greater certainty on trade policy while enacting a long-term surface transportation bill would help contractors bid work with greater confidence, invest in their businesses and workforce, and ensure critical infrastructure projects continue moving forward.”