Construction input prices increased 1.9% in June compared to the previous month, according to an Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics’ Producer Price Index data released today. Nonresidential construction input prices increased 1.8% for the month.
Construction input prices are up 20.1% from a year ago, while nonresidential construction input prices are 20.3% higher. On a monthly basis, input prices were down in four of 11 subcategories in June, with the largest decline registered in the softwood lumber category (-24.8%). All three energy subcategories experienced price increases, with natural gas prices rising 24.3% for the month.
“It’s no secret that contractors and their customers have been walloped by massive increases in construction materials prices,” said ABC Chief Economist Anirban Basu. “That inflation continued through June, as reflected in the decline in profit margin expectations seen in the most recent reading of ABC’s Construction Confidence Index. But more recently, key commodity prices have declined, so it may be possible we have achieved peak inflation.
“Indeed, with much of the world at risk of recession, there is likely to be further downward pressure on commodity prices going forward,” said Basu. “Oil prices had been in the range of $120/barrel recently. As of this morning, the price of oil has dipped into the low $90s. Similarly, natural gas prices have been in decline. In part, this may be because global supply chains are readjusting to disruptions caused by the Russia-Ukraine war. The war creates an ongoing risk of sudden spikes in certain commodity prices, but we appear to be entering a new phase in input price trajectory.”
Related Stories
Office Buildings | Jun 8, 2022
Former L.A. Times newsroom/printing plant remade into office campus
Phase 1 of The Press, an adaptive reuse project that is converting an old Los Angeles Times facility into a modern office campus, was recently completed in Costa Mesa, Calif.
Codes and Standards | Jun 7, 2022
FEMA launches National Initiative to Advance Building Codes
The U.S. Federal Emergency Management Agency (FEMA) has launched a new government-wide effort to boost national resiliency and reduce energy costs.
Plumbing | Jun 7, 2022
Sloan launches ‘Sinks Beyond the Restroom’ innovation
Sloan, the world’s leading manufacturer of commercial plumbing systems, has launched its ‘Sinks Beyond the Restroom’ concept.
Building Team | Jun 7, 2022
Announcing construction inclusion week 2022: October 17-21, 2022
Save the date for Construction Inclusion Week 2022: October 17-21, 2022.
University Buildings | Jun 7, 2022
Newfoundland university STEM building emulates natural elements, local traditions
Memorial University of Newfoundland (MUN) recently opened a new building that will provide interdisciplinary learning and research space for Faculties of Science and Engineering.
Codes and Standards | Jun 2, 2022
Guide helps schools find funding for buildings from federal, state government
New Buildings Institute (NBI) recently released a guide to help schools identify funding programs for facilities improvements available from federal and state government programs.
Airports | Jun 2, 2022
SOM-designed International Arrival Facility at Seattle’s Sea–Tac airport features the world’s largest aerial walkway
The Skidmore, Owings & Merrill (SOM)-designed International Arrivals Facility (IAF) at Seattle-Tacoma International Airport has opened, replacing a 50-year-old arrival facility.
Women in Design+Construction | Jun 2, 2022
Women in Architecture: How HMC Pioneers Gender Equality
A survey by the Association of Collegiate Schools of Architecture (ACSA) shows that while women account for nearly half of graduates from architecture programs, they only make up about 15 percent of licensed architects.
Codes and Standards | Jun 2, 2022
New design guide for hybrid steel-mass timber frames released
The American Institute of Steel Construction (AISC) has released the first-ever set of U.S. recommendations for hybrid steel frames with mass timber floors, according to a news release.
Mass Timber | Jun 2, 2022
Brooklyn is home to New York City’s first mass timber condo building
In the Brooklyn neighborhood of Park Slope, the newly completed Timber House is New York City’s first mass timber condominium building and its largest mass timber project (by height and square footage).
