Plumbing costs dip with housing

Inflation in the plumbing fixtures and brass fittings market reached its highest level in four years during the late summer of 2000, but was easing as the market moved into the final third of the year. Average prices received by U.S. manufacturers of plumbing products during November 2000 were up 1.5 percent from the level of August 1999. As recently as August, the annualized price increase for plumbing products was running at over 3 percent. New housing demand has cooled in recent months, however, and remodeling spending is growing only moderately. With housing starts likely to fall again this year and remodeling growth expected to be lackluster, there will be ample production capacity to meet plumbing demand.