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
| Apr 23, 2012
AAMA releases updated specification for anodized aluminum
AAMA 611-12 describes test procedures and requirements for high performance (Class I) and commercial (Class II) architectural quality aluminum oxide coatings applied to aluminum extrusions and panels for architectural products.
| Apr 23, 2012
Thornton Tomasetti project wins AISC Merit Award
Thornton Tomasetti provided structural design services through construction administration to architect HOK for the 1.6-million-sf tower and tiara structure, which comprises 15 steel tube arches spanning approximately 158 feet horizontally and 130 feet vertically from the top of the main building roof.
| Apr 23, 2012
Construction underway on City Winery Chicago
The Building Team is maintaining the old brick and timber construction, while adding 5,000-sf of new construction in the form of a two-story addition within the site’s existing courtyard.
| Apr 20, 2012
McCarthy completes Santa Barbara Cottage Hospital Replacement Facility
The new hospital’s architectural design combines traditional Santa Barbara Spanish colonial architecture with 21st century medical conveniences highlighted by a therapeutic and sustainable atmosphere.
| Apr 20, 2012
Century-old courthouse renovated for Delaware law firm offices
To account for future expansion, Francis Cauffman developed a plan to accommodate the addition of an 8-story tower to the building.
| Apr 20, 2012
RCMA and Oak Ridge National Laboratory to host International Roof Coatings Conference
The International Roof Coatings Conference will feature keynote speakers Marc LaFrance of the U.S. Department of Energy, and Art Rosenfeld of the Lawrence Berkeley National Laboratory.
| Apr 20, 2012
Shawmut completes Yard House Restaurant in Boston
12,000-sf restaurant marks new addition to Boston’s Fenway neighborhood.
| Apr 20, 2012
Registration open for Solar Power International 2012 in Orlando
President Bill Clinton to deliver keynote address at ?largest solar energy event in the Americas.
| Apr 19, 2012
The 10 mistakes most likely to get you sued
The California Chamber of Commerce has produced a white paper cataloging the top 10 mistakes most likely to get a company sued. While a few of the laws cited apply specifically to California, some of them are federal and may apply in your state.
| Apr 19, 2012
Holcim cement plants recognized at PCA Spring Meeting
The Holly Hill plant received the PCA’s Chairman’s Safety Performance Award in recognition of their exceptional health and safety programs. The Theodore plant received the Environmental Performance Award in recognition of the steps they take beyond those required by laws, regulations and permits to minimize their impact on the environment.
