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
| Nov 8, 2013
Net-zero bellwether demonstrates extreme green, multifamily style
The 10-unit zHome in Issaquah Highlands, Wash., is the nation’s first net-zero multifamily project, as certified this year by the International Living Future Institute.
| Nov 8, 2013
Walkable solar pavement debuts at George Washington University
George Washington University worked with supplier Onyx Solar to design and install 100 sf of walkable solar pavement at its Virginia Science and Technology Campus in Ashburn, Va.
| Nov 6, 2013
PECI tests New Buildings Institute’s plug load energy use metrics at HQ
Earlier this year, PECI used the NBI metrics to assess plug load energy use at PECI headquarters in downtown Portland, Ore. The study, which informed an energy-saving campaign, resulted in an 18 percent kWh reduction of PECI’s plug load.
| Nov 5, 2013
Net-zero movement gaining traction in U.S. schools market
As more net-zero energy schools come online, school officials are asking: Is NZE a more logical approach for school districts than holistic green buildings?
| Nov 5, 2013
New IECC provision tightens historic building exemption
The International Energy Conservation Code has been revised to eliminate what has been seen as a blanket exemption for historic buildings.
| Nov 5, 2013
Living Building Challenge clarifies net-zero definitions and standards
The Living Building Challenge has released the Net Zero Energy Building Certification to provide clearer definitions regarding what net zero really means and how it is to be achieved.
| Nov 5, 2013
Oakland University’s Human Health Building first LEED Platinum university building in Michigan [slideshow]
Built on the former site of a parking lot and an untended natural wetland, the 160,260-sf, five-story, terra cotta-clad building features some of the industry’s most innovative, energy-efficient building systems and advanced sustainable design features.
| Nov 4, 2013
Architecture and engineering industry outlook remains positive on all major indicators
While still below pre-recession levels, all of the key indicators in the latest Quarterly Market Forecast (QMF) report from PSMJ Resources remain in positive territory.
| Nov 1, 2013
Lean Construction Institute receives Turner Prize for Innovation in Construction
The National Building Museum and Turner Construction Company present the 11th Henry C. Turner Prize for Innovation in Construction to Lean Construction Institute. Lean construction is an innovative way to design and build structures that strives to create a safer workplace, reduce cost, and provide faster delivery while maintaining high quality control.
| Nov 1, 2013
CBRE Group enhances healthcare platform with acquisition of KLMK Group
CBRE Group, Inc. (NYSE:CBG) today announced that it has acquired KLMK Group, a leading provider of facility consulting, project advisory and facility activation solutions to the healthcare industry.