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
| Oct 11, 2011
AIA introduces five new documents for use on sustainable projects
These new documents will be available in the first quarter of 2012 as part of the new AIA Contract Documents service and AIA Documents on Demand.
| Oct 7, 2011
GREENBUILD 2011: Schools program receives grant to track student conservation results
To track results, schools will use the newly developed Sustainability Dashboard, a unique web-based service that makes tracking sustainability initiatives affordable and easy.
| Oct 6, 2011
GREENBUILD 2011: NEXT Living EcoSuite showcased
Tridel teams up with Cisco and Control4 to unveil the future of green condo living in Canada.
| Oct 6, 2011
GREENBUILD 2011: Kingspan Insulated Panels spotlights first-of-its-kind Environmental Product Declaration
Updates to Path to NetZero.
| Oct 4, 2011
GREENBUILD 2011
Click here for the latest news and products from Greenbuild 2011, Oct. 4-7, in Toronto.
| Oct 4, 2011
GREENBUILD 2011: Methods, impacts, and opportunities in the concrete building life cycle
Researchers at the Massachusetts Institute of Technology’s (MIT) Concrete Sustainability Hub conducted a life-cycle assessment (LCA) study to evaluate and improve the environmental impact and study how the “dual use” aspect of concrete.
| Sep 28, 2011
Look who's coming to BD+C's Under-40 Leadership Summit
AEC industry "under-40 superstars" from top design and construction firms have signed up for BD+C's "Under-40 Leadership Summit."
| Sep 28, 2011
Bradley sponsors design studio on intelligent buildings for UWM SARUP
The studio is taught by Gregory D. Thomson, assistant professor and co-director of the Institute for Ecological Design at UWM.
| Sep 23, 2011
ABI turns positive after four monthly declines
On the heels of a period of weakness in design activity, the Architecture Billings Index (ABI) took a sudden upturn in August.
| Sep 19, 2011
Portland team hired as LEED and commissioning consultants for $5.5B downtown sustainable project in Qatar
The $5.5 billion sustainable downtown regeneration project underway by Msheireb Properties will transform a 76 acres site at the centre of Doha, Qatar’s capital city, recreating a way of living that is rooted in Qatari culture, attracting residents back to the city center and reversing the trend for decentralization.
