Construction input prices decreased 1.8% in July 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 decreased 1.8% for the month as well.
Construction input prices are up 17.4% from a year ago, while nonresidential construction input prices are 17.3% higher. Input prices were down in eight of 11 subcategories on a monthly basis. Prices in all three energy subcategories fell in July, with natural gas prices falling 27.6%, the largest decrease. Unprocessed energy materials prices were down 21.2%, while crude petroleum prices fell 19.1%.
“Today’s Producer Price Index data supplies additional evidence that inflation has peaked,” said ABC Chief Economist Anirban Basu. “A weakening global economy and ongoing supply chain adjustments have resulted in significant declines in the prices of a number of key commodities, ranging from oil to steel. While the risk of recession remains elevated, recent government reports on consumer and producer prices make it more likely that the Federal Reserve will be able to engineer a soft landing or that any recession to come could be quite mild. For contractors who have seen their profit margins diminished by elevated materials prices, a trend confirmed by ABC’s Construction Confidence Index, this is a welcome development.”
Related Stories
| Dec 21, 2011
BBI key to Philly high-rise renovation
The 200,000 sf building was recently outfitted with a new HVAC system and a state-of-the-art window retrofitting system.
| Dec 20, 2011
Gluckman Mayner Architects releases design for Syracuse law building
The design reflects an organizational clarity and professional sophistication that anticipates the user experience of students, faculty, and visitors alike.
| Dec 20, 2011
Research identifies most expensive U.S. commercial real estate markets
New York City, Washington, D.C. and San Mateo, Calif., rank highest in rents.
| Dec 20, 2011
Third annual Gingerbread Build-off winners announced
Nine awards were handed out acknowledging the most unique and creative gingerbread structures completed.
| Dec 20, 2011
BCA’s Best Practices in New Construction available online
This publicly available document is applicable to most building types and distills the long list of guidelines, and longer list of tasks, into easy-to-navigate activities that represent the ideal commissioning process.
| Dec 20, 2011
Aragon Construction leading build-out of foursquare office
The modern, minimalist build-out will have elements of the foursquare “badges” in different aspects of the space, using glass, steel, and vibrantly painted gypsum board.
| Dec 20, 2011
HOAR Construction opens Austin, Texas office
Major projects in central Texas spur firm’s growth.
| Dec 19, 2011
HGA renovates Rowing Center at Cornell University
Renovation provides state-of-the-art waterfront facility.
| Dec 19, 2011
Chicago’s Aqua Tower wins international design award
Aqua was named both regional and international winner of the International Property Award as Best Residential High-Rise Development.