Construction input prices dipped 1.4% during the final month of 2014 and are down nearly 1% on a year-over-year basis, according to the Jan. 15 producer price index release from the U.S. Department of Labor.
Inputs to nonresidential construction fell even further, down 1.7% for the month and 1.9% year over year. December's report marks the sharpest decline in input prices since late 2008 during the global financial crisis and the fifth consecutive month construction materials prices have failed to rise.
"Without question, financial markets have been unnerved by the recent declines in oil, copper and other commodity prices, although that jitteriness does not necessarily imply a serious economic problem in America," said Associated Builders and Contractors Chief Economist Anirban Basu. "The fact is the U.S. economy has performed handsomely over the past nine months, according to most metrics, and conventional wisdom suggests that it can continue to expand at or above trend rates of growth despite economic weakening in Europe, China and elsewhere. This is further evidenced by the World Bank's recent downgrade of its forecasts for global growth in 2015 and 2016, while it upgraded its outlook for the United States.
"Overall, the view that U.S. domestic demand for construction services and most other services continues to expand is consistent with the fact that some domestically produced and consumed materials actually registered price increases last month," said Basu. "Note that concrete prices are up by 5% on a year-over-year basis while natural gas prices are up by 10%."
The following materials prices increased in December:
• Prices for plumbing fixtures expanded 0.1% in December and are up 3.1% on a year-over-year basis.
• Concrete products prices expanded 0.7% in December and are up 5% on a yearly basis.
• Natural gas prices expanded 19.7% in December and are 10% higher than one year ago.
• Fabricated structural metal product prices grew 0.3% for the month and have expanded 1.5% on a year-over-year basis.
• Seven of the 11 key construction inputs did not experience price increases for the month.
• Iron and steel prices fell 1% in December and are down 3.9% from the same time last year.
• Nonferrous wire and cable prices fell 1.6% on a monthly basis and 1.5% on a yearly basis.
• Prices for prepared asphalt, tar roofing, and siding fell 1% for the month but are up 1.9% on a year-ago basis.
• Steel mill products prices fell 1.3% for the month but are 0.4% higher than one year ago.
• Softwood lumber prices fell 1.3% in December but are 0.3% higher than one year ago.
• Crude petroleum prices fell 18.9% in December and are down 37.1% from the same time last year.
• Crude energy materials prices fell 4.7% in December but are 19.6% lower year-over-year.
Related Stories
| Jun 1, 2012
AIA 2030 Commitment Program reports new results
The full report contains participating firm demographics, energy reduction initiatives undertaken by firms, anecdotal accounts, and lessons learned.
| Jun 1, 2012
Robert Wilson joins SmithGroupJJR
Wilson makes the move to SmithGroupJJR from VOA Associates, Inc., where he served as a senior vice president and technical director in its Chicago office.
| Jun 1, 2012
Gilbane Building's Sue Klawans promoted
Industry veteran tasked with boosting project efficiency and driving customer satisfaction, to direct operational excellence efforts.
| Jun 1, 2012
Ground broken for Children’s Hospital Colorado South Campus
Children’s Hospital Colorado expects to host nearly 80,000 patient visits at the South Campus during its first year.
| Jun 1, 2012
K-State Olathe Innovation Campus receives LEED Silver
Aspects of the design included a curtain wall and punched openings allowing natural light deep into the building, regional materials were used, which minimized the need for heavy hauling, and much of the final material included pre and post-consumer recycled content.
| Jun 1, 2012
New York City Department of Buildings approves 3D BIM site safety plans
3D BIM site safety plans enable building inspectors to take virtual tours of construction projects and review them in real-time on site.
| May 31, 2012
Product Solutions June 2012
Curing agents; commercial faucets; wall-cladding systems.
| May 31, 2012
8 steps to a successful BIM marketing program
It's not enough to have BIM capability--you have to know how to sell your BIM expertise to clients and prospects.
| May 31, 2012
3 Metal Roofing Case Studies Illustrate Benefits
Metal roofing systems offer values such as longevity, favorable life cycle costs, and heightened aesthetic appeal.
| May 31, 2012
AIA Course: High-Efficiency Plumbing Systems for Commercial and Institutional Buildings
Earn 1.0 AIA/CES learning units by studying this article and successfully completing the online exam.
