Construction material prices drop slightly in April, extending the decline

The construction materials price index for nonresidential buildings fell 0.3% in April extending the decline since the September index peak to 13.1%. Prices for the mix of materials used in nonresidential construction prices are back to the December 2007 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 but be rising modestly again by the end of the year and rising more quickly next year, perhaps up 4–5% from the 2009 average.

April's price drop was led by structural steel (7.3%) and plywood (-3.3%). The only significant April price increases were for diesel (20.5%) and nonferrous pipe and tube (20.9%) which had both declined in March. Rising scrap and ore prices mean rising nonferrous product prices for at least several months. The Energy Department reports that diesel pump prices were unchanged from the April to the May price survey week.

Percent Change in ..... 1 month 3 months 12 months 3 years Source: Producer Price Index. Bureau of Labor Statistics Construction commodities Cement 0.8 -0.2 0.0 6.1 Construction sand, gravel & crushed stone 0.5 1.4 5.5 23.1 Softwood plywood -3.3 -4.9 -12.7 -21.1 Softwood lumber 1.6 -2.6 -10.7 -32.5 Manufactured materials Gypsum products -0.2 -1.2 5.3 -17.5 Diesel fuel 20.5 -2.6 -56.2 -30.6 Paint 0.1 0.1 12.4 22.5 Plastic construction products -0.5 -0.6 3.0 1.9 Vitreous plumbing fixtures 2.3 2.4 4.2 -1.9 Ceramic tile -2.0 -1.4 -0.2 1.6 Flat glass -0.4 -1.0 2.9 2.7 Hot-rolled bars, plates, and structural shapes -7.3 -15.7 -25.9 -2.0 Extruded aluminum rod, bar, and other shapes 1.2 -4.3 -26.3 -18.2 Architectural metalwork 0.6 -2.4 12.1 24.7 Metal plumbing fixtures 0.5 0.2 2.2 13.1 Builders' hardware 0.5 -2.7 6.8 20.4 Sheet metal products -0.6 -3.6 0.2 9.9 Nonferrous pipe and tube 20.9 26.7 -28.5 -1.3 Building brick 0.5 -0.2 0.1 0.8 Ready-mix concrete -1.0 -1.9 3.4 10.7 Concrete block and brick 0.3 -0.1 3.3 10.1 Millwork (window, door, cabinet) -0.2 0.7 1.7 5.3 Engineered wood products -1.3 -3.3 -2.6 -14.6 Metal doors, sash, and trim -0.8 0.2 5.4 9.2 Summary Construction materials (commodity level) -2.3 -3.1 -1.7 4.9 Inputs to construction industries -0.4 -1.6 -3.6 6.4 Inputs to nonresidential construction -0.3 -1.6 -5.2 6.3