Results from the Bureau of Labor Statistics showed that prices for construction materials rose 0.8% in March. According to Associated Builders and Contractors, Inc., it was the largest monthly increase in more than two years.
Prices for construction materials have risen for two straight months after falling for the previous six.
Although prices are up on a monthly basis, statistics showed that input prices are down 3.6% on a year-over-year basis, the fourth consecutive month this has occurred. The steady decline in input prices is the longest streak since 2009 as crude petroleum prices fell 4% in March and are down eight of the last nine months.
"Though U.S. nonresidential and residential segments continue to expand, global construction volumes remain suppressed by widespread weakness in Asia, Europe, and Latin America," said ABC Chief Economist Anirban Basu. "With the U.S. dollar likely to get stronger over the next few months as domestic interest rates begin to rise, there is little likelihood of significant increases in construction input prices over the next six to nine months. Overall producer prices managed to increase 0.5% on a monthly basis, the first increase since June 2014. This reading serves to increase the likelihood that the Federal Reserve will begin to increase short-term interest rates later this year."
There were only two key material categories that saw an increase in construction prices in March: fabricated strucutal metal produce prices (0.4%) and natural gas prices (1.5%).
While these two inputs rose, others fell:
- Prices for plumbing fixtures dropped 0.3% in March but remain up 2.5% year-over-year.
- The price of prepared asphalt, tar roofing, and siding dipped 0.4% in March.
- Iron and steel prices dropped 2.5% in March and are down 11.5% year-over-year.
- Prices for steel mill products slipped 1.9% in March and are down 4.8% on a yearly basis.
- Concrete products prices were flat but up 4.1% year-over-year.
- Crudge petroleum prices dropped 4% in March and are down 55% from the same time last year.
- Crude energy material costs decreased 1.4% in March and are down 43.7% from the previous year.
- Softwood lumed prices fell 4.1% and are down 7.4% year-over-year.
- Prices for nonferrous wire and cable were flat in March and rose 2.5% on a yearly basis.
To read the entire report, click here.
Related Stories
| Feb 27, 2014
Metal Construction Association introduces two Environmental Product Declarations
Two Environmental Product Declarations (EPD), one for Metal Composite Material Panels and one for Roll Formed Steel Panels for Roofs and Walls, are now available free of charge from the Metal Construction Association (MCA) on its website.
| Feb 24, 2014
White Paper: The science of color and light
This white paper from Benjamin Moore provides an overview of the properties of color and light, along with practical guidance on how the relationship between the two affects design choices.
| Feb 20, 2014
5 myths about cross laminated timber
A CLT expert clears up several common misconceptions and myths surrounding the use of wood as a building material.
| Feb 20, 2014
World's longest desk? Massive, undulating desk accommodates 145 office workers [video]
The desk is built from plywood and one continuous sheet of resin, and can serve all 145 office employees at once.
| Feb 14, 2014
Must see: Developer stacks shipping containers atop grain silos to create student housing tower
Mill Junction will house up to 370 students and is supported by 50-year-old grain silos.
| Feb 14, 2014
The Technology Report 2014: Top tech tools and trends for AEC professionals
In this special five-part report, Building Design+Construction explores how Building Teams throughout the world are utilizing advanced robotics, 3D printers, drones, data-driven design, and breakthroughs in building information modeling to gain efficiencies and create better buildings.
| Feb 5, 2014
7 towers that define the 'skinny skyscraper' boom [slideshow]
Recent advancements in structural design, combined with the loosening of density and zoning requirements, has opened the door for the so-called "superslim skyscraper."
| Feb 4, 2014
World's fifth 'living building' certified at Smith College [slideshow]
The Bechtel Environmental Classroom utilizes solar power, composting toilets, and an energy recovery system, among other sustainable strategies, to meet the rigorous performance requirements of the Living Building Challenge.
| Jan 24, 2014
Structural concrete requirements under revision: ACI 318 standard
The American Concrete Institute (ACI), an organization whose mission is to develop and disseminate consensus-based knowledge on concrete and its uses, is finalizing a completely reorganized ACI 318-14: Building Code Requirements for Structural Concrete.
| Jan 13, 2014
Custom exterior fabricator A. Zahner unveils free façade design software for architects
The web-based tool uses the company's factory floor like "a massive rapid prototype machine,” allowing designers to manipulate designs on the fly based on cost and other factors, according to CEO/President Bill Zahner.
