Contractors Hot Line is part of the Catalyst Communications Network publication family.
Contractors Hot Line is part of the Catalyst Communications Network publication family.
Construction input prices dropped by 0.3% in June compared to the previous month, according to an analysis by the Associated Builders and Contractors (ABC) of the U.S. Bureau of Labor Statistics Producer Price Index data. In the nonresidential sector, construction input prices experienced a slightly higher decline of 0.4% for the month.
“Construction materials prices dipped in June, perhaps a reflection of declining project starts in a number of construction segments and an associated dip in demand,” ABC Chief Economist Anirban Basu said. “For instance, input prices fell in the multifamily segment, where many contractors indicate substantial softening of demand for their services. The same was true of input prices in commercial construction segments.”
Despite the monthly decline, overall construction input prices are still 1.1% higher than they were a year ago, with nonresidential construction input prices up by 0.7% year over year.
Energy subcategories saw mixed price movements in June. Natural gas prices surged by 36.3%, and the aggregate price of unprocessed energy materials increased by 4.7%. However, crude petroleum prices experienced a slight decrease of 0.2% for the month.
The data highlights the fluctuating nature of construction material costs, with energy prices playing a significant role in the overall pricing landscape.
Meanwhile, the equipment finance industry’s confidence was reported to be steady in the month of June, according to the Equipment Leasing & Finance Foundation.