The largest monthly gain in petroleum prices in over three years caused construction materials prices to expand 0.4 percent in February, ending a six-month streak when prices failed to rise, according to the March 13 producer price index release by the Bureau of Labor Statistics. On a year-over-year basis, construction input prices fell 3.9%. Nonresidential construction input prices also rose 0.4% on a monthly basis and were down 4.9% on a yearly basis.
"While conventional wisdom suggests that oil and natural gas prices will eventually rise, the adjustment period could be a lengthy one and although crude petroleum prices were up 12.3% on a monthly basis, this is likely a function of an abnormally cold February," said Associated Builders and Contractors Chief Economist Anirban Basu. "This rise is the first monthly gain since April 2014 and the eighth consecutive month in which petroleum prices were down on a year-over-year basis.
"For now, inventories of fuel remain elevated and most believe that the U.S. dollar's upward movement is not at an end," said Basu. "This, in addition to the quantitative easing that has begun in Europe and the potential for increasing interest rates in America, means that there is likely to be greater demand for U.S. fixed income assets, which will serve to further strengthen the U.S. dollar and put downward pressure on certain key construction input prices. This dynamic was widely apparent in February, during which prices for seven of the 11 key construction inputs failed to rise and no input other than crude petroleum increased in excess of one percent."
The following materials prices increased in February:
- Nonferrous wire and cable prices grew 0.8% on a monthly basis but fell 4.4% on a yearly basis
- Crude petroleum prices gained 12.3% in February but are down 53.4% from the same time last year.
- Crude energy materials prices expanded 0.9% in February but are 45% lower year-over-year.
- Concrete products prices expanded 0.2% in February and are up 4.3% on a yearly basis.
Seven of the 11 key construction inputs did not expand for the month:
- Prices for plumbing fixtures fell 0.1% in February but are up 3.0% on a year-over-year basis.
- Fabricated structural metal product prices remained flat for the month and have expanded 1.0% on a year-over-year basis.
- Prices for prepared asphalt, tar roofing, and siding fell 1.4% for the month but are up 1.7% on a year-ago basis.
- Iron and steel prices fell 5.4% in February and are down 10.6% from the same time last year.
- Steel mill products prices fell 1.8% for the month and are 3.6% lower than one year ago.
- Softwood lumber prices fell 3.7% in February and are 4.4% lower than one year ago.
- Natural gas prices fell 11.2% in February and are down 51.8% from one year ago.
Related Stories
Retail Centers | Apr 28, 2022
Cannabis dispensary Beyond-Hello debuts ‘glass-box’ design for Culver City facility
Los Angeles’ Culver City will open its first cannabis dispensary with Beyond/Hello.
Office Buildings | Apr 28, 2022
A 48-story office tower to rise over boomtown Austin
In downtown Austin, Texas, a planned 48-story office tower, The Republic, recently secured its first major tenant—allowing for the groundbreaking by midyear.
Codes and Standards | Apr 27, 2022
White House guidance on Buy American for infrastructure includes waiver process
Recently released guidance on the Buy American provision within the $1.2 trillion Infrastructure Investment and Jobs Act released by the Office of Management and Budget includes a waiver process.
Sports and Recreational Facilities | Apr 27, 2022
New Univ. of Texas Moody Center houses men’s and women’s basketball, other events
The recently completed 530,000 sf University of Texas Moody Center is the new home for men’s and women’s basketball at the Austin campus.
Green | Apr 26, 2022
Climate justice is the design challenge of our lives
As climate change accelerates, poor nations and disadvantaged communities are suffering the first and worst impacts.
Multifamily Housing | Apr 26, 2022
Fitness centers for multifamily housing: Advice from 'Dr. Fitness,' Karl Smith
In this episode for HorizonTV, Cortland's Karl Smith shares best practices for designing, siting, and operating fitness centers in apartment communities.
Mixed-Use | Apr 26, 2022
Downtown Phoenix to get hundreds of residential and student housing units
In fast-growing Phoenix, Arizona, a transit-oriented development called Central Station will sit adjacent to Arizona State University’s Downtown Phoenix campus.
Hotel Facilities | Apr 25, 2022
U.S. hotel construction pipeline up 2%, with 5,090 projects in the works
The total U.S. hotel construction pipeline stands at 5,090 projects and 606,302 rooms at the end of the first quarter of 2022, up 2% by projects, but down 3% by rooms, according to the Q1 2022 Construction Pipeline Trend Report for the United States from Lodging Econometrics (LE).
Codes and Standards | Apr 25, 2022
Supply chain constraints, shifting consumer demands adding cost pressures to office fit-outs
Cushman & Wakefield’s 2022 Americas Office Fit-Out Cost Guide found supply chain constraints and shifting consumer demands will continue to add pressure to costs, both in materials and labor.
Sports and Recreational Facilities | Apr 25, 2022
Iowa's Field of Dreams to get boutique hotel, new baseball fields
A decade ago, Go the Distance Baseball formed to preserve the Iowa farm site where the 1989 movie Field of Dreams was filmed.
