Prices for construction materials fall in January, following plummet of oil prices

The latest produce price index from the U.S. Department of Labor showed that there was a 2% drop in construction input prices during the month of January, marking the six straight month prices failed to rise, the Associated Builders and Contractors reported.

Construction input prices were down 3.6% from the same time last year. Data from the Department of Labor also showed that there was a 2.1% fall from December to January, and a 4.6% decline on a yearly basis for nonresidential construction.

While the produce price index dipped in January, there were other material prices that rose last month and included the following:

There were only three key construction inputs that did not expand in January.
Prices for iron and steel dropped 0.6% in January and 6.7% from the same time last year.
Plumbing fixture prices rose 0.8% in January and 3.9% year-over-year.
Prices for prepared asphalt, tar roofing, and siding increased by 2.7% on a monthly basis and 4.2% yearly.
Softwood lumber prices fell 1.5% on a monthly basis and are 0.6% lower than this time last year.

“The decline in oil and petroleum prices finally showed up in the PPI data,” said Associated Builders and Contractors Chief Economist Anirban Basu. “According to the Bureau of Labor Statistics, crude petroleum prices fell 30.6% for the month and 54.8% for the year, but other input categories also experienced downward pressure, include nonferrous wire and cable and softwood lumber.”

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