US nonresidential construction input costs rose 11.9% in a year, the most in four years

The Associated General Contractors of America said on 15 October 2026 that the producer price index for inputs to new nonresidential construction rose 11.9% from September 2025 to September 2026, the most in four years, based on government data. Chief economist Ken Simonson blamed tariff- and war-induced increases in materials costs as higher metals and fuel prices spread across a wider range of prices, along with longer lead times for key steel components. The association said construction firms appear to be absorbing most of the increases amid relatively soft demand for projects other than data centers.

What it means Rising input costs and steel lead times squeeze contractor margins and schedules, including on the data-center builds that are keeping demand up.