Prices of construction machinery and equipment were up 1%, in November, compared to October, according to the Associated Builders and Contractors (ABC). Compared to November 2022, prices have increased 6.9%, and prices are up 28.1% compared to February 2020, the month before the pandemic rolled in.
Overall construction input prices are 0.3% lower compared to the previous month, according to ABC, and are 0.8% lower than a year ago. Prices decreased in 2 of the 3 energy subcategories in November. Crude petroleum input prices were down 9.5%, while unprocessed energy materials prices were down 3.2%. Natural gas prices rose 24.1% in November.
“Construction input prices declined for the second straight month in November,” said Anirban Basu, chief economist, in a statement. “While much of the recent decline is due to record domestic oil production and the resulting precipitous decline in gas and diesel prices, other commodities like iron and steel and lumber products are currently more affordable than they were at the same time last year.
“Falling, or at the very least stable, input prices should help to control construction cost increases in the coming quarters,” said Basu. “This is a welcome development for an industry still dealing with extraordinarily elevated financing costs and rising labor costs due to ongoing worker shortages.”
