Construction input prices dipped 1.4% during the final month of 2014 and are down nearly 1% on a year-over-year basis, according to the Jan. 15 producer price index release from the U.S. Department of Labor.
Inputs to nonresidential construction fell even further, down 1.7% for the month and 1.9% year over year. December's report marks the sharpest decline in input prices since late 2008 during the global financial crisis and the fifth consecutive month construction materials prices have failed to rise.
"Without question, financial markets have been unnerved by the recent declines in oil, copper and other commodity prices, although that jitteriness does not necessarily imply a serious economic problem in America," said Associated Builders and Contractors Chief Economist Anirban Basu. "The fact is the U.S. economy has performed handsomely over the past nine months, according to most metrics, and conventional wisdom suggests that it can continue to expand at or above trend rates of growth despite economic weakening in Europe, China and elsewhere. This is further evidenced by the World Bank's recent downgrade of its forecasts for global growth in 2015 and 2016, while it upgraded its outlook for the United States.
"Overall, the view that U.S. domestic demand for construction services and most other services continues to expand is consistent with the fact that some domestically produced and consumed materials actually registered price increases last month," said Basu. "Note that concrete prices are up by 5% on a year-over-year basis while natural gas prices are up by 10%."
The following materials prices increased in December:
• Prices for plumbing fixtures expanded 0.1% in December and are up 3.1% on a year-over-year basis.
• Concrete products prices expanded 0.7% in December and are up 5% on a yearly basis.
• Natural gas prices expanded 19.7% in December and are 10% higher than one year ago.
• Fabricated structural metal product prices grew 0.3% for the month and have expanded 1.5% on a year-over-year basis.
• Seven of the 11 key construction inputs did not experience price increases for the month.
• Iron and steel prices fell 1% in December and are down 3.9% from the same time last year.
• Nonferrous wire and cable prices fell 1.6% on a monthly basis and 1.5% on a yearly basis.
• Prices for prepared asphalt, tar roofing, and siding fell 1% for the month but are up 1.9% on a year-ago basis.
• Steel mill products prices fell 1.3% for the month but are 0.4% higher than one year ago.
• Softwood lumber prices fell 1.3% in December but are 0.3% higher than one year ago.
• Crude petroleum prices fell 18.9% in December and are down 37.1% from the same time last year.
• Crude energy materials prices fell 4.7% in December but are 19.6% lower year-over-year.
Related Stories
Modular Building | Feb 12, 2015
New shipping container complex begins construction in Albuquerque
The Green Jeans Farmery already has a hydroponic farm component courtesy of owner and entrepreneur Roy Solomon.
Transit Facilities | Feb 12, 2015
Gensler proposes network of cycle highways in London’s unused underground
Unused tube lines would host pedestrian paths, cycle routes, cultural spaces, and retail outlets.
Healthcare Facilities | Feb 11, 2015
Primer: Using 'parallel estimating' to pinpoint costs on healthcare construction projects
As pressure increases to understand capital cost prior to the first spade touching dirt, more healthcare owners are turning to advanced estimating processes, like parallel estimating, to improve understanding of exposure, writes CBRE Healthcare's Andrew Sumner.
Transportation & Parking Facilities | Feb 11, 2015
11 of the nation’s best ‘Complete Streets’ policies of 2014
Austin, Texas, and Troy, N.Y., are among the cities with the strongest safe streets policies, according to a new report.
Sponsored | Roofing | Feb 11, 2015
New school blends with local architecture using Petersen metal roof
Perkins Eastman in Stamford, Conn., designed the school to emphasize and integrate the International Baccalaureate curriculum throughout.
Mixed-Use | Feb 11, 2015
Developer plans to turn Eero Saarinen's Bell Labs HQ into New Urbanist town center
Designed by Eero Saarinen in the late 1950s, the two-million-sf, steel-and-glass building was one of the best-funded and successful corporate research laboratories in the world.
Architects | Feb 11, 2015
Shortlist for 2015 Mies van der Rohe Award announced
Copenhagen, Berlin, and Rotterdam are the cities where most of the shortlisted works have been built.
BIM and Information Technology | Feb 10, 2015
Google's 3D scanning camera leaves the lab
Google is said to be partnering with LG to create a version of the technology for public release sometime this year.
Steel Buildings | Feb 10, 2015
Korean researchers discover 'super steel'
The new alloy makes steel as strong as titanium.
Architects | Feb 9, 2015
The generalist architect vs. the specialist architect
The corporate world today quite often insists on hiring specialists, but the generalists have an intrinsic quality to adapt to new horizons or even cultural shifts in the market, writes SRG Partnership's Gary Harris.
