Results from the Bureau of Labor Statistics showed that prices for construction materials rose 0.8% in March. According to Associated Builders and Contractors, Inc., it was the largest monthly increase in more than two years.
Prices for construction materials have risen for two straight months after falling for the previous six.
Although prices are up on a monthly basis, statistics showed that input prices are down 3.6% on a year-over-year basis, the fourth consecutive month this has occurred. The steady decline in input prices is the longest streak since 2009 as crude petroleum prices fell 4% in March and are down eight of the last nine months.
"Though U.S. nonresidential and residential segments continue to expand, global construction volumes remain suppressed by widespread weakness in Asia, Europe, and Latin America," said ABC Chief Economist Anirban Basu. "With the U.S. dollar likely to get stronger over the next few months as domestic interest rates begin to rise, there is little likelihood of significant increases in construction input prices over the next six to nine months. Overall producer prices managed to increase 0.5% on a monthly basis, the first increase since June 2014. This reading serves to increase the likelihood that the Federal Reserve will begin to increase short-term interest rates later this year."
There were only two key material categories that saw an increase in construction prices in March: fabricated strucutal metal produce prices (0.4%) and natural gas prices (1.5%).
While these two inputs rose, others fell:
- Prices for plumbing fixtures dropped 0.3% in March but remain up 2.5% year-over-year.
- The price of prepared asphalt, tar roofing, and siding dipped 0.4% in March.
- Iron and steel prices dropped 2.5% in March and are down 11.5% year-over-year.
- Prices for steel mill products slipped 1.9% in March and are down 4.8% on a yearly basis.
- Concrete products prices were flat but up 4.1% year-over-year.
- Crudge petroleum prices dropped 4% in March and are down 55% from the same time last year.
- Crude energy material costs decreased 1.4% in March and are down 43.7% from the previous year.
- Softwood lumed prices fell 4.1% and are down 7.4% year-over-year.
- Prices for nonferrous wire and cable were flat in March and rose 2.5% on a yearly basis.
To read the entire report, click here.
Related Stories
Contractors | Jul 13, 2023
Construction input prices remain unchanged in June, inflation slowing
Construction input prices remained unchanged in June 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 were also unchanged for the month.
Sponsored | Fire and Life Safety | Jul 12, 2023
Fire safety considerations for cantilevered buildings [AIA course]
Bold cantilevered designs are prevalent today, as developers and architects strive to maximize space, views, and natural light in buildings. Cantilevered structures, however, present a host of challenges for building teams, according to José R. Rivera, PE, Associate Principal and Director of Plumbing and Fire Protection with Lilker.
Mass Timber | Jul 11, 2023
5 solutions to acoustic issues in mass timber buildings
For all its advantages, mass timber also has a less-heralded quality: its acoustic challenges. Exposed wood ceilings and floors have led to issues with excessive noise. Mass timber experts offer practical solutions to the top five acoustic issues in mass timber buildings.
Apartments | Jun 27, 2023
Dallas high-rise multifamily tower is first in state to receive WELL Gold certification
HALL Arts Residences, 28-story luxury residential high-rise in the Dallas Arts District, recently became the first high-rise multifamily tower in Texas to receive WELL Gold Certification, a designation issued by the International WELL Building Institute. The HKS-designed condominium tower was designed with numerous wellness details.
Building Materials | Jun 14, 2023
Construction input prices fall 0.6% in May 2023
Construction input prices fell 0.6% in May compared to the previous month, according to an Associated Builders and Contractors analysis of the U.S. Bureau of Labor Statistics’ Producer Price Index data released today. Nonresidential construction input prices declined 0.5% for the month.
Mass Timber | Jun 13, 2023
Mass timber construction featured in two-story mixed-use art gallery and wine bar in Silicon Valley
The Edes Building, a two-story art gallery and wine bar in the Silicon Valley community of Morgan Hill, will prominently feature mass timber. Cross-laminated timber (CLT) and glulam posts and beams were specified for aesthetics, biophilic properties, and a reduced carbon footprint compared to concrete and steel alternatives.
Cladding and Facade Systems | Jun 5, 2023
27 important questions about façade leakage
Walter P Moore’s Darek Brandt discusses the key questions building owners and property managers should be asking to determine the health of their building's façade.
AEC Tech | May 9, 2023
4 insights on building product manufacturers getting ‘smart’
Overall, half of building product manufacturers plan to invest in one or more areas of technology in the next three years.
Building Technology | May 4, 2023
3D printing for construction advances in Germany
The largest 3D-printed building in Europe will have a much lower carbon footprint.
Mass Timber | May 3, 2023
Gensler-designed mid-rise will be Houston’s first mass timber commercial office building
A Houston project plans to achieve two firsts: the city’s first mass timber commercial office project, and the state of Texas’s first commercial office building targeting net zero energy operational carbon upon completion next year. Framework @ Block 10 is owned and managed by Hicks Ventures, a Houston-based development company.
