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    Home » Trends » July Construction Input Prices Unchanged
    Trends

    July Construction Input Prices Unchanged

    BEX StaffBy BEX StaffAugust 15, 2023No Comments2 Mins Read
    Credit: Associated Builders and Contractors
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    By Associated Builders and Contractors

    Construction input prices were unchanged in July relative to the previous month, according to an Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics Producer Price Index. Nonresidential construction input prices fell 0.1% for the month.

    Overall construction input prices are 3.1% lower than a year ago, while nonresidential construction input prices are 2.7% lower. However, prices increased in all three energy subcategories. Natural gas prices were up 11.0% in July, while crude petroleum and unprocessed energy materials prices increased 8.4% and 8.0%, respectively.

    “Goods prices continue to stagnate in the context of improved supply chains and a sluggish global economy,” said ABC Chief Economist Anirban Basu. “It has been the improvement of supply chains that best explains recent positive economic outcomes in the U.S. economy. As supply chains have normalized, unmet demand has been more readily satisfied. That has propelled transactional volume and economic growth. At the same time, the improved supply chain has helped push prices lower, contributing to the disinflation observable both in yesterday’s consumer price index data and today’s producer price index release.

    “With the exception of energy prices, which are heavily influenced by a cocktail of geopolitics, weather and investor frenzy, construction materials prices should be reasonably stable during the months to come,” said Basu. “One exception may be construction equipment prices. The price of equipment expanded nearly 2% on a monthly basis in July and nearly 10% over the past year. Many contractors continue to complain about lengthy lead times for equipment as the nation continues to expand spending on infrastructure.” (Source)

    ABC Anirban Basu Associated Builders and Contractors construction equipment prices construction input prices Consumer Price Index CPI disinflation economic slowdown energy prices inflation lead times PPI Producer Price Index supply chains transactional volume trends U.S. Bureau of Labor Statistics
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