flexiblefullpage -
billboard - default
interstitial1 - interstitial
Currently Reading

Construction input prices unchanged in October

Market Data

Construction input prices unchanged in October

Nonresidential construction input prices fell 0.1% for the month and are down 2.0% compared to the same time last year.

By ABC | November 14, 2019
Produce Price Index Graph
Produce Price Index Graph

Construction input prices remained unchanged on a monthly basis in October but are down 2.2% year-over-year, 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 fell 0.1% for the month and are down 2.0% compared to the same time last year.

Falling energy prices accounted for much of the year-over-year price decline. Among the eight subcategories that decreased, the most significant were in natural gas (-31.8%), crude petroleum (-29.8%) and unprocessed energy materials (-26.3%). Monthly natural gas prices, however, were up 7.7% from September, likely due in part to seasonal factors. Two other subcategories had year-over-year decreases greater than 10%: iron and steel (-16.1%) and steel mill products (-13.1%).

“New month, same story on materials prices,” said ABC Chief Economist Anirban Basu. “While the decline in crude petroleum prices in October may have been caused by a spike in oil prices in September due to an assault on Saudi facilities, price weakness was apparent in several other materials categories as well. Many categories experienced effectively no change in price whatsoever on a monthly basis, including key materials such as softwood lumber, concrete, plumbing fixtures and the segment that includes prepared asphalt.

“While the U.S. nonresidential construction sector remains busy and a majority of contractors expect to see an increase in sales over the next few months, according to ABC’s Construction Confidence Indicator, materials prices continue to languish due to a combination of a weakening global economy, a sturdy U.S. dollar and recently observed declines in investment in structures. The lifting of tariffs on certain producers of steel and aluminum earlier this year may also be playing a factor, with iron and steel prices down approximately 16% compared to one year ago and the price of steel mill products down more than 13%.

“Contractors can expect more seesawing in materials prices going forward as opposed to smooth declines,” said Basu. “There is evidence that certain parts of the global economy are firming, which will help stabilize the demand for certain materials. The U.S. dollar is no longer strengthening as it had been, in part because the Federal Reserve has pursued an easier money policy this year. That said, there could be a dip in oil prices next year as more supply comes online from nations such as Canada, Norway, Brazil and Guyana.”



Related Stories

| Jun 5, 2023

Communication is the key to AEC firms’ mental health programs and training

The core of recent awareness efforts—and their greatest challenge—is getting workers to come forward and share stories.

Contractors | May 24, 2023

The average U.S. contractor has 8.9 months worth of construction work in the pipeline, as of April 2023

Contractor backlogs climbed slightly in April, from a seven-month low the previous month, according to Associated Builders and Contractors.

Multifamily Housing | May 23, 2023

One out of three office buildings in largest U.S. cities are suitable for residential conversion

Roughly one in three office buildings in the largest U.S. cities are well suited to be converted to multifamily residential properties, according to a study by global real estate firm Avison Young. Some 6,206 buildings across 10 U.S. cities present viable opportunities for conversion to residential use.

Industry Research | May 22, 2023

2023 High Growth Study shares tips for finding success in uncertain times

Lee Frederiksen, Managing Partner, Hinge, reveals key takeaways from the firm's recent High Growth study. 

Multifamily Housing | May 8, 2023

The average multifamily rent was $1,709 in April 2023, up for the second straight month

Despite economic headwinds, the multifamily housing market continues to demonstrate resilience, according to a new Yardi Matrix report. 

Market Data | May 2, 2023

Nonresidential construction spending up 0.7% in March 2023 versus previous month

National nonresidential construction spending increased by 0.7% in March, according to an Associated Builders and Contractors analysis of data published today by the U.S. Census Bureau. On a seasonally adjusted annualized basis, nonresidential spending totaled $997.1 billion for the month.

Hotel Facilities | May 2, 2023

U.S. hotel construction up 9% in the first quarter of 2023, led by Marriott and Hilton

In the latest United States Construction Pipeline Trend Report from Lodging Econometrics (LE), analysts report that construction pipeline projects in the U.S. continue to increase, standing at 5,545 projects/658,207 rooms at the close of Q1 2023. Up 9% by both projects and rooms year-over-year (YOY); project totals at Q1 ‘23 are just 338 projects, or 5.7%, behind the all-time high of 5,883 projects recorded in Q2 2008.

Market Data | May 1, 2023

AEC firm proposal activity rebounds in the first quarter of 2023: PSMJ report

Proposal activity for architecture, engineering and construction (A/E/C) firms increased significantly in the 1st Quarter of 2023, according to PSMJ’s Quarterly Market Forecast (QMF) survey. The predictive measure of the industry’s health rebounded to a net plus/minus index (NPMI) of 32.8 in the first three months of the year. 

Industry Research | Apr 25, 2023

The commercial real estate sector shouldn’t panic (yet) about recent bank failures

A new Cushman & Wakefield report depicts a “well capitalized” banking industry that is responding assertively to isolated weaknesses, but is also tightening its lending.

Architects | Apr 21, 2023

Architecture billings improve slightly in March

Architecture firms reported a modest increase in March billings. This positive news was tempered by a slight decrease in new design contracts according to a new report released today from The American Institute of Architects (AIA). March was the first time since last September in which billings improved.

boombox1 - default
boombox2 -
native1 -

More In Category

halfpage1 -

Most Popular Content

  1. 2021 Giants 400 Report
  2. Top 150 Architecture Firms for 2019
  3. 13 projects that represent the future of affordable housing
  4. Sagrada Familia completion date pushed back due to coronavirus
  5. Top 160 Architecture Firms 2021