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
| Oct 17, 2012
Denver office building makes use of single-component wall system for retrofit
The Building Team selected Centria's Formawall Dimension Series to help achieve the retrofit project's goals of improved aesthetics, sustainability, and energy efficiency.
| Jun 25, 2012
Living green wall planned for InterContinental Chicago
Project, with price tag of $2 million to $3 million, needs council approval.
| Jun 22, 2012
Golden Gate Bridge Celebrates 75 Years With the Opening of New Bridge Pavilion
With features such as Nichiha's Illumination series panels, super-insulating glass units, and LED lighting, the new Golden Gate Bridge Pavilion not only boasts the bridge's famous international orange, but green sustainability as well
| Jun 15, 2012
InPro’s bio-content becomes Cradle-to-Cradle CertifiedCM Silver
Two main components of G2 Blend formula now C2C Certified Silver.
| Jun 13, 2012
GAF’s Roving Truck promotion coming to your town soon
Professional roofing contractors or builders/remodelers in the U.S. can enter to win a Ford F-150 truck.
| Jun 12, 2012
SAC Federal Credit Union selects LEO A DALY to design corporate headquarters
LEO A DALY also provided site selection, programming and master planning services for the project over the past year.
| Jun 12, 2012
Restoration Millwork exterior trim achieves GreenCircle certification
Made from cellular polyvinyl chloride, the full line of Restoration Millwork trim, beadboard and accessories is engineered to look, feel and work like top-grade lumber.
