The construction materials price index for nonresidential buildings fell 0.6% in March extending the decline since the September peak to 12.8%. Materials prices are back to the January 2008 level before the 14% jump in prices from March through September. The materials price index is expected to decline slowly for a few more months and then rise modestly by the end of the year. The index will rise more quickly next year, perhaps up 4-5% from the 2009 average.
March's price drop was led by diesel fuel (-8.9%), structural steel (-6.4%), and lumber (-3.5%). Weekly price reports assure that diesel prices will be higher in April. Another decline in steel and steel product prices is assured by the 8.3% March decline in steel scrap prices in a still weakening world economy. Softwood lumber prices are 11% below a year ago and 35% below three years ago. Yet they are likely to drop marginally lower in the next few months before a pickup in residential construction begins as early as this summer.
Components used in housing, such as lumber, gypsum, and low-rise roofing, have the most risk of price increase over the next year as the housing market begins to recover later this year.
—Jim Haughey, BD+C Economist and Chief Economist for Reed Construction Data
| Percent change in: | 1 month | 3 months | 12 months |
| Source: Producer Price Index. Bureau of Labor Statistics | |||
| Construction commodities | |||
| Cement | 0.1 | 0.2 | -0.4 |
| Construction sand, gravel, crushed stone | 0.0 | 2.3 | 6.1 |
| Softwood plywood | -0.8 | -4.0 | -9.8 |
| Softwood lumber | -3.5 | -7.4 | -11.1 |
| Manufactured materials | |||
| Gypsum products | 0.0 | -0.1 | 5.7 |
| Diesel fuel | -8.9 | -22.7 | -62.7 |
| Paint | 0.0 | 0.0 | 12.2 |
| Plastic construction products | 0.1 | 0.2 | 3.5 |
| Vitreous plumbing fixtures | 0.0 | 0.1 | 1.9 |
| Ceramic tile | 1.9 | 0.9 | 1.6 |
| Flat glass | -0.8 | -2.3 | 2.4 |
| Hot-rolled bars, plates, structural shapes | -6.4 | -12.0 | -15.1 |
| Extruded aluminum rod, bar, shapes | -2.3 | -12.5 | -23.9 |
| Architectural metalwork | -1.6 | -5.6 | 13.9 |
| Metal plumbing fixtures | 0.3 | 0.1 | 2.6 |
| Builders' hardware | -0.1 | -2.9 | 8.2 |
| Sheet metal products | -1.8 | -3.2 | 2.9 |
| Nonferrous pipe and tube | -1.0 | -1.4 | -41.3 |
| Building brick | -1.1 | -0.8 | -1.0 |
| Ready-mix concrete | -0.7 | 1.4 | 4.8 |
| Concrete block and brick | 3.3 | 4.1 | 8.0 |
| Millwork (window, door, cabinet) | 0.3 | 1.1 | 2.0 |
| Engineered wood products | 0.8 | -3.9 | -0.9 |
| Metal doors, sash, trim | 1.6 | 0.4 | 5.4 |
| Summary | |||
| Construction materials (commodity level) | 0.3 | -1.5 | 2.0 |
| Inputs to construction industries | -0.6 | -1.5 | -2.1 |
| Inputs to nonresidential construction | -0.6 | -1.7 | -3.7 |
