Construction input prices remained unchanged 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 were also unchanged for the month.
Overall construction input prices are 4.9% lower than a year ago, while nonresidential construction input prices are 4.5% lower. Prices decreased in all three energy subcategories in June. Crude petroleum prices were down 5.9%, while natural gas prices fell 5.3%. Unprocessed energy materials prices decreased 5.0% for the month.
“The pandemic-induced period of rapid construction input cost increases is over,” said ABC Chief Economist Anirban Basu. “Today’s Producer Price Index data, along with yesterday’s Consumer Price Index release, show that inflation has slowed, at least with regard to goods prices. This recent moderation is partially due to a drastic improvement in supply chains; both international and domestic freight rates have plunged back toward pre-pandemic levels.
“Despite this recent cooling, construction input prices are still up more than 38% since the start of the pandemic,” said Basu. “That’s over twice the increase observed for economywide prices over that span. Contractor confidence declined last month, according to ABC’s Construction Confidence Index, and the combination of expensive materials, high interest rates that are likely to rise again at the Federal Reserve’s July meeting and tight credit conditions will put downward pressure on construction activity over the next few quarters.”
Related Stories
Codes and Standards | Dec 11, 2023
Washington state tries new approach to phase out fossil fuels in new construction
After pausing a heat pump mandate earlier this year after a federal court overturned Berkeley, Calif.’s ban on gas appliances in new buildings, Washington state enacted a new code provision that seems poised to achieve the same goal.
Green | Dec 11, 2023
U.S. has tools to meet commercial building sector decarbonization goals early
The U.S. has the tools to reduce commercial building-related emissions to reach target goals in 2029, earlier than what it committed to when it signed the Paris Agreement, according to a report by the U.S. Green Building Council.
MFPRO+ News | Dec 11, 2023
U.S. poorly prepared to house growing number of older adults
The U.S. is ill-prepared to provide adequate housing for the growing ranks of older people, according to a report from Harvard University’s Joint Center for Housing Studies. Over the next decade, the U.S. population older than 75 will increase by 45%, growing from 17 million to nearly 25 million, with many expected to struggle financially.
Office Buildings | Dec 11, 2023
Believe it or not, there could be a shortage of office space in the years ahead
With work-from-home firmly established, many real estate analysts predict a dramatic reduction in office space leasing and plummeting property values. But the high-end of the office segment might actually be headed for a shortage, according to real estate intelligence company CoStar Group.
University Buildings | Dec 8, 2023
Yale University breaks ground on nation's largest Living Building student housing complex
A groundbreaking on Oct. 11 kicked off a project aiming to construct the largest Living Building Challenge-certified residence on a university campus. The Living Village, a 45,000 sf home for Yale University Divinity School graduate students, “will make an ecological statement about the need to build in harmony with the natural world while training students to become ‘apostles of the environment’,” according to Bruner/Cott, which is leading the design team that includes Höweler + Yoon Architecture and Andropogon Associates.
Giants 400 | Dec 5, 2023
Top 50 Federal Government Building Construction Firms for 2023
Fluor, BL Harbert, Hensel Phelps, and Turner Construction top BD+C's ranking of the nation's largest federal government building general contractors and construction management (CM) firms for 2023, as reported in Building Design+Construction's 2023 Giants 400 Report.
Giants 400 | Dec 5, 2023
Top 70 Federal Government Building Architecture Firms for 2023
Page Southerland Page, HOK, Gensler, LEO A DALY, and Stantec top BD+C's ranking of the nation's largest federal government building architecture and architecture/engineering (AE) firms for 2023, as reported in Building Design+Construction's 2023 Giants 400 Report.
University Buildings | Dec 5, 2023
The University of Cincinnati builds its largest classroom building to serve its largest college
The University of Cincinnati’s recently completed Clifton Court Hall unifies the school’s social science programs into a multidisciplinary research and education facility. The 185,400-sf structure is the university’s largest classroom building, serving its largest college, the College of Arts and Sciences.
MFPRO+ News | Dec 5, 2023
DOE's Zero Energy Ready Home Multifamily Version 2 released
The U.S. Department of Energy has released Zero Energy Ready Home Multifamily Version 2. The latest version of the certification program increases energy efficiency and performance levels, adds electric readiness, and makes compliance pathways and the certification process more consistent with the ENERGY STAR Multifamily New Construction (ESMFNC) program.
Giants 400 | Nov 28, 2023
Top 55 Laboratory Construction Firms for 2023
Whiting-Turner, DPR Construction, STO Building Group, Skanska, and Hensel Phelps top BD+C's ranking of the nation's largest laboratory general contractors and construction management (CM) firms for 2023, as reported in Building Design+Construction's 2023 Giants 400 Report.
