Construction input prices decreased 1.8% in July 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 decreased 1.8% for the month as well.
Construction input prices are up 17.4% from a year ago, while nonresidential construction input prices are 17.3% higher. Input prices were down in eight of 11 subcategories on a monthly basis. Prices in all three energy subcategories fell in July, with natural gas prices falling 27.6%, the largest decrease. Unprocessed energy materials prices were down 21.2%, while crude petroleum prices fell 19.1%.
“Today’s Producer Price Index data supplies additional evidence that inflation has peaked,” said ABC Chief Economist Anirban Basu. “A weakening global economy and ongoing supply chain adjustments have resulted in significant declines in the prices of a number of key commodities, ranging from oil to steel. While the risk of recession remains elevated, recent government reports on consumer and producer prices make it more likely that the Federal Reserve will be able to engineer a soft landing or that any recession to come could be quite mild. For contractors who have seen their profit margins diminished by elevated materials prices, a trend confirmed by ABC’s Construction Confidence Index, this is a welcome development.”
Related Stories
Giants 400 | Sep 9, 2022
Top 80 Hotel Sector Contractors + CM Firms for 2022
AECOM, Suffolk Construction, STO Building Group, and Swinerton top the ranking of the nation's largest hotel and resort sector contractors and construction management (CM) firms for 2022, as reported in Building Design+Construction's 2022 Giants 400 Report.
| Sep 9, 2022
Add sand shortage to supply chain woes
As if it wasn’t enough to have lumber, windows, doors, and metal pipe in short supply, you can add sand, which is theoretically plentiful on Earth, to the list of construction materials that can be hard to come by.
Senior Living Design | Sep 8, 2022
What’s new with AQ: The top trends in active adult living
Today's 55-or-better buyers are ready to design their lives and their homes as they see fit. With so much growth on tap, builders and developers must stay apprised of trends related to home, environment, and culture of 55+ communities.
| Sep 8, 2022
The Twin Cities’ LGBTQ health clinic moves into a new and improved facility
For more than 50 years, Family Tree Clinic has provided reproductive and sexual health services to underserved populations—from part of an old schoolhouse, until recently.
| Sep 8, 2022
U.S. construction costs expected to rise 14% year over year by close of 2022
Coldwell Banker Richard Ellis (CBRE) is forecasting a 14.1% year-on-year increase in U.S. construction costs by the close of 2022.
Giants 400 | Sep 7, 2022
Top 110 Industrial Sector Contractors + CM Firms for 2022
Clayco, Arco Construction, Ryan Companies, and STO Building Group top the ranking of the nation's largest industrial facility sector contractors and construction management (CM) firms for 2022, as reported in Building Design+Construction's 2022 Giants 400 Report.
| Sep 7, 2022
Use of GBCI building performance tools rapidly expanding
More than seven billion square feet of project space is now being tracked using Green Business Certification Inc.’s (GBCI’s) Arc performance platform.
| Sep 7, 2022
K-8 school will help students learn by conducting expeditions in their own communities
In August, SHP, an architecture, design, and engineering firm, broke ground on the new Peck Expeditionary Learning School in Greensboro, N.C. Guilford County Schools, one of the country’s 50 largest school districts, tapped SHP based on its track record of educational design.
| Sep 6, 2022
Herbert V. Kohler, Jr. (1939-2022) An incomparable spirit
Dynamic leader and Kohler Co. Executive Chairman Herbert Vollrath Kohler, Jr. passed away on September 3, 2022, in Kohler, Wisconsin.
| Sep 6, 2022
Demand for flexible workspace reaches all-time high
Demand for flexible workspace including coworking options has never been higher, according to a survey from Yardi Kube, a space management software provider that is part of Yardi Systems.