Construction input prices declined 0.9 percent in November compared to the previous month, according to an Associated Builders and Contractors (ABC) analysis of U.S. Bureau of Labor Statistics Producer Price Index data.
Nonresidential construction input prices fell 0.8 percent for the month.
Construction input prices are up 11.9 percent from a year ago, while nonresidential construction input prices are 11.5 percent higher. Input prices were up in only four of the 11 subcategories on a monthly basis. Natural gas experienced the largest decrease in prices, falling 15.8 percent in November. Unprocessed energy prices declined 7.8 percent, while crude petroleum prices were down 2.3 percent.
“The decline in wholesale prices for many construction inputs is generally positive news,” said ABC chief economist Anirban Basu. “Increasingly, we are receiving news that construction input inflation has peaked as supply chains continue to normalize despite a range of geopolitical stressors. In November, much of the relief emerged from lower energy prices. According to ABC’s Construction Confidence Index, contractors are already expecting growth in sales and employment levels over the next six months; this report will do little to curb that optimism."
Source: ABC
About the Author
Frank RaczonFrank Raczon
Frank Raczon has covered and influenced the equipment industry for 35 years, including 15 years as senior editor of Construction Equipment, and marketing, advertising, and public relations work with the industry's top manufacturers. In addition to authoring "Caterpillar: Modern Earthmoving Marvels" (Motorbooks, 2015), he has won numerous awards in his career, highlighted by nods from the Construction Writers Association, the Association of Equipment Manufacturers, the Business Marketing Association, and BtoB magazine. Raczon has also won a number of awards from publishing peer groups such as ASBPE and TABPI.