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.”
![Producer Price Index 2022](/sites/default/files/inline-images/Producer%20Price%20Index%202022.png)
![Producer Price Index Percent Change](/sites/default/files/inline-images/Producer%20Price%20Index%20Percent%20Change.png)
Related Stories
| Nov 14, 2012
USGBC's Greenbuild International Conference and Expo kicks off in San Francisco
7,000 members of the green building industry convene for opening plenary headlined by "Morning Joe" co-hosts Mika Brzezinksi and Joe Scarborough
| Nov 13, 2012
Sto Corp. announces appointment of new CMO
Bottema will be responsible for all corporate marketing, product management and sales activities.
| Nov 12, 2012
PCI Skanska celebrates 40-year anniversary
Since its creation, PCI Skanska has provided EPC services to clients for more than 40 years.
| Nov 11, 2012
Under40 Leadership Summit draws 71 young leaders to Chicago
More than 70 young—that is, under age 40—architects, engineers, and construction professionals descended on Chicago in early October with one thought in mind: to learn how to “create with clarity.”
| Nov 11, 2012
AIA: Building Envelope
Preventing and treating failure in glazed curtain wall systems. Earn 1.0 AIA/CES learning units by studying this article and successfully completing the online exam.
| Nov 11, 2012
Greenbuild 2012 Report: Government & Military
Public sector remains a bastion of sustainability
| Nov 11, 2012
Greenbuild 2012 Report: Healthcare
Green medical facilities extend beyond hospital walls
| Nov 11, 2012
Greenbuild 2012 Report: Multifamily
Sustainably designed apartments are apples of developers’ eyes
| Nov 11, 2012
Greenbuild 2012 Report: Higher Education
More and more colleges and universities see sustainainably designed buildings as a given
| Nov 6, 2012
Uponor files patent infringement suit against Sioux Chief Manufacturing
Uponor is seeking damages and an injunction to prevent Sioux Chief from selling the PowerPEX F1960 Ring with Stop, which it believes violates Uponor’s patent.