Construction input prices fell 0.6% in May compared to the previous month, according to an Associated Builders and Contractors analysis of the U.S. Bureau of Labor Statistics’ Producer Price Index data. Nonresidential construction input prices declined 0.5% for the month.
Overall construction input prices are 3.7% lower than a year ago. Nonresidential construction input prices are 3.4% lower. Prices declined in all three energy subcategories. Crude petroleum prices were down 10.2% in May, while unprocessed energy materials were down 7.8%. Natural gas prices fell 2.0% for the month.
“The headline numbers suggest broad-based deflation in construction materials prices,” said ABC Chief Economist Anirban Basu. “But the declines in input prices are less broad than meets the eye. Much of the deflation is tied to energy, steel and softwood lumber.
“Beyond those spheres, there is plenty of input price inflation,” said Basu. “For instance, concrete prices increased 1.1% for the month and more than 12% for the year. The price of construction machinery and equipment rose marginally for the month and is up more than 9% over the past year. Prices for brick and structural clay tile as well as adhesives and sealants are also up more than 9% over the past 12 months. In short, there are still supply chain challenges, but a weakening global economy has helped place downward pressure on several traded commodities. With so many public and private megaprojects under development in the United States, it is likely that many input price categories will continue to show inflationary tendencies even if the overall economy dips into recession.”
Related Stories
| Jun 13, 2017
Accelerate Live! talk: Next-gen materials for the built environment, Blaine Brownell, Transmaterial
Architect and materials guru Blaine Brownell reveals emerging trends and applications that are transforming the technological capacity, environmental performance, and design potential of architecture.
Sponsored | Building Materials | Jun 9, 2017
Problem solving in Asheville with R-Trac & ALPOLIC® materials
The developers of the recently opened Asheville City Center sought out a cost-effective design that met code requirements while still allowing the building to feel open from the outside.
Sustainability | May 16, 2017
1.5 million recycled plastic bottles were used to build this nine-story structure in Taipei
The building is made of Polli-Brick, a building material that comes from 100% recycled Polyethylene Terephthalate Polymer.
Building Technology | May 5, 2017
Tips for designing and building with bathroom pods
Advancements in building technology and ongoing concerns about labor shortages make prefabrication options such as bathrooms pods primed for an awakening.
Building Technology | Apr 21, 2017
AIA selects 2016 Upjohn Research Initiative Projects
Grants awarded to initiatives that study various aspects of design within the built environment.
Market Data | Mar 22, 2017
After a strong year, construction industry anxious about Washington’s proposed policy shifts
Impacts on labor and materials costs at issue, according to latest JLL report.
Sponsored | Building Materials | Mar 20, 2017
Vinyl reveals meet increasing demand
With a tight school renovation budget and timeline, the Oak Grove Elementary cafeteria, designed by RuckPate Architects/CS2 Designs, utilized Architectural Reveals to build curving soffits with a racing stripe reveal design.
Building Materials | Mar 13, 2017
11 transmaterials highlight the coming generation of building products
Fiber-reinforced plastic, 3D-printed stone, and programmable ink tiles are a few materials coming down the pike for the AEC industry.
