Construction input prices fell 0.6% in May compared to the previous month, according to an Associated Builders and Contractors analysis of the U.S. Bureau of Labor Statistics’ Producer Price Index data. Nonresidential construction input prices declined 0.5% for the month.
Overall construction input prices are 3.7% lower than a year ago. Nonresidential construction input prices are 3.4% lower. Prices declined in all three energy subcategories. Crude petroleum prices were down 10.2% in May, while unprocessed energy materials were down 7.8%. Natural gas prices fell 2.0% for the month.
“The headline numbers suggest broad-based deflation in construction materials prices,” said ABC Chief Economist Anirban Basu. “But the declines in input prices are less broad than meets the eye. Much of the deflation is tied to energy, steel and softwood lumber.
“Beyond those spheres, there is plenty of input price inflation,” said Basu. “For instance, concrete prices increased 1.1% for the month and more than 12% for the year. The price of construction machinery and equipment rose marginally for the month and is up more than 9% over the past year. Prices for brick and structural clay tile as well as adhesives and sealants are also up more than 9% over the past 12 months. In short, there are still supply chain challenges, but a weakening global economy has helped place downward pressure on several traded commodities. With so many public and private megaprojects under development in the United States, it is likely that many input price categories will continue to show inflationary tendencies even if the overall economy dips into recession.”
Related Stories
Sponsored | Building Materials | Sep 7, 2016
Peeling Back the Layers: The Case for Monolithic Foam Seals in Expansion Joint Systems.
Sponsored | Building Materials | Aug 22, 2016
Mind the Gap
Temporary Expansion Joints in Large Structures
Building Materials | Jun 16, 2016
ABC: Construction material prices rise again in May
Nonresidential construction price gains were largely driven by iron and steel prices and steel mill product prices.
Green | Jun 2, 2016
USGBC offers new LEED pilot credit: Building Material Human Hazard and Exposure Assessment
For assessing human health-related exposure scenarios for construction products.
Building Materials | Jun 1, 2016
MIT study: Microscopic structure of natural materials can inspire better concrete
Bones and sea sponges are highly organized at the molecular level, while concrete consists of random composites.
Sponsored | Building Materials | May 25, 2016
Materials Manufactured to Move Protect Southwest Energy’s New Office
Codes and Standards | May 20, 2016
Industry leaders call for wider use of bamboo as a building material
Benefits include seismic resiliency and sustainability.
Building Materials | Apr 8, 2016
AIA: Architects release first white paper on materials transparency and risk
It provides the steps architects should be taking to ensure change, promote openness, and increase collaboration between themselves, their suppliers, and their clients.
