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
BIM and Information Technology | Sep 14, 2015
Is Apple's new iPad Pro a game changer for architects?
A stylus, split screen, and improved graphics make designing on the tablet easier.
Sponsored | Building Team | Aug 25, 2015
9 characteristics that distinguish leading A/E firms
By analyzing the “benchmark firms” selected from its annual surveys, PSMJ has identified several characteristics that distinguish top performers
Office Buildings | Aug 24, 2015
British company OpenDesk offers open-sourced office furniture
Offices can “download” their furniture to be made locally, anywhere.
Sponsored | BIM and Information Technology | Aug 20, 2015
Part II - Will BIM Work as a Deliverable? A Legal Perspective on BIM
Having the right counsel on your team can be the difference between long drawn-out negotiations and breaking new ground to meet the owner’s needs.
Sponsored | Building Team | Aug 20, 2015
Understanding the values and aspirations of millennials
A recent LinkedIn workplace survey revealed that millennials (defined as individuals aged 18–24) are quite different from boomers (those aged 55–65)
BIM and Information Technology | Aug 17, 2015
Reimagined cursors can change digital imaging
A University of Montreal professor has developed a system that elevates 2D cursors for a 3D world.
Building Team | Aug 17, 2015
One female contractor gets vocal about urging women to consider construction as a career
Doreen DiPolito of Florida’s D-Mar General Contracting thinks opportunities abound in an industry struggling with worker shortages.
Sponsored | Building Team | Aug 11, 2015
How to improve project planning
A recent research project revealed that more than 75 percent of project owners have no consistent method for assessing project risks and setting budget contingencies.
Retail Centers | Jul 27, 2015
Fish-shaped shopping mall designed for odd plot of land in China
The mall, in Qinshui, a city in China’s Shanxi province, will fit within the 250x30-meter dimensions surrounded by parallel roads and two converging rivers.
Airports | Jul 22, 2015
MUST SEE: JFK airport taps Gensler to design terminal for animals
Pets can enjoy luxurious spa and grooming services before being transported directly to their flight from the terminal.
