Tag Archive for 'construction materials'

ABC Reports: Construction Materials Prices Up 0.5 Percent in March

CEU2“Despite the increase in materials prices, this report does not signal a period of much higher inflation.” —ABC Chief Economist Anirban Basu.

PPI_4 11 14Construction materials prices expanded 0.5 percent in March and are up 1.1 percent from March of last year, according to the U.S. Department of Labor’s April 11 producer price index release. Nonresidential construction materials prices are up 0.4 percent for the month and are 1 percent higher than the same time one year ago.

“Despite the increase in materials prices, this report does not signal a period of much higher inflation,” said Associated Builders and Contractors Chief Economist Anirban Basu. “While it is true that there were significant increases in overall monthly inflation for both the broader economy and for construction, only a handful of categories were actually associated with a meaningful uptick in prices.”

Overall, the nation’s wholesale goods prices fell 0.1 percent in March but are up 1.7 percent year over year. Crude energy materials prices fell 6.8 percent in March but are still 13.6 percent higher than one year ago, and have expanded by 34.1 percent through the first three months of 2014.

“With respect to the broader economy, much of the inflation was related to food, which likely is a result of meteorological impacts,” said Basu. “With respect to construction, only three of 11 categories actually experienced increasing prices for the month. Given modest projections for both global and national economic growth, it is unlikely that significant inflationary pressures will be experienced during the month ahead with respect to most construction materials prices.”

The following materials prices increased in March.

Nonferrous wire and cable prices gained 0.1 percent in March but are down 2.7 percent from one year ago.

Concrete products prices expanded 0.3 percent in March and are up 3.9 percent from one year ago.

Prices for prepared asphalt, tar roofing, and siding expanded by 1.1 percent for the month and are up 0.1 percent from one year ago.

Eight of the 11 key construction inputs did not experience price increases for the month.

Iron and steel prices fell 1.7 percent in March but are up 1.3 percent from the same time last year.

Natural gas prices fell 10.9 percent in March but are 48.5 percent higher than one year ago.

Crude energy prices fell 6.8 percent in March but are 13.6 percent higher than one year ago.

Steel mill products prices shed 1.1 percent for the month but are 1.4 percent higher than one year ago.

Crude petroleum prices fell 6.4 percent in March but are up 3.9 percent from March 2013.

Prices for plumbing fixtures shed 0.8 percent for the month but are up 1.9 percent from the same time last year.

Fabricated structural metal product prices are down 0.2 percent for the month but have risen 0.5 percent from one year ago.

Softwood lumber prices fell 0.8 percent in March and are 2.1 percent lower than one year ago.

To view the previous PPI report, click HERE

Construction Materials Prices Rise Only 0.1 Percent In December

CEU2“Materials prices continue to be unusually well behaved, neither rising nor falling aggressively on a month-to-month basis.” —ABC Chief Economist Anirban Basu.

PPI_JanuaryConstruction materials prices expanded just 0.1 percent in December and are up 1.3 percent year over year, according to a Jan. 15 Producer Price Index released by the Department of Labor. Nonresidential construction materials prices also rose only 0.1 percent for the month and are 1 percent higher than the same time one year ago.

“Materials prices continue to be unusually well behaved, neither rising nor falling aggressively on a month-to-month basis,” said Associated Builders and Contractors Chief Economist Anirban Basu. “That said, there was some volatility in individual input segments, including natural gas prices, which were up 7.8 percent, and crude petroleum, which was up 7.1 percent,” Basu said. “These increases are at least partially explained by seasonal factors and do not likely foreshadow aggressive price increases going forward. At the same time, certain input prices fell, including softwood lumber, down 3.3 percent, and nonferrous wire/cable, down 1.4 percent.”

Overall, the nation’s wholesale goods prices expanded 0.4 percent in December and are up 1.2 percent year over year.

“While there is never a guarantee of input price stability, for now things seems reasonably calm,” Baus said. “The world economy is anticipated to accelerate this year to 3.6 percent growth, up from closer to 3 percent last year. That will help push the level of demand for construction materials higher, but not necessarily in ways that are especially damaging to a still-benign U.S. nonresidential construction industry outlook.”

The following materials prices increased in December:

Fabricated structural metal product prices are up 0.1 percent and have risen 0.6 percent on a year-over-year basis.

Natural gas prices rose 7.8 percent in December and are 4.9 percent higher than one year ago.

Natural gas prices rose 7.8 percent in December and are 4.9 percent higher than one year ago.

Crude energy prices grew 4.8 percent in December and are 4.4 percent higher year over year.

Iron and steel prices expanded 1.6 percent in December but are down 5.9 percent from the same time last year.

Prices for plumbing fixtures and fittings rose 0.1 percent for the month and are up 1.6 percent on a year-over-year basis.

Steel mill products prices expanded 0.3 percent for the month but are 6.3 percent lower than one year ago.

A number of key construction inputs did not experience price increases for the month:

Prices for prepared asphalt, tar roofing and siding declined 0.8 percent for the month but are up 3.6 percent from last year.

Concrete products remained flat in December but are up 2.3 percent year over year.

Nonferrous wire and cable prices shed 1.4 percent on a monthly basis and are down 3.4 percent from December 2012.

Softwood lumber prices fell 3.3 percent for the month but are 6.6 percent higher than one year ago.

To view the previous Producer Price Index report, click here.

ABC Reports: Construction Materials Prices Remain Stable In November

CEU2“November represented another month of remarkable stability for construction input prices.” —ABC Chief Economist Anirban Basu.

PPI-December_2013Overall, construction materials prices fell 0.5 percent in November and are up only 1.1 percent year over year, according to the Department of Labor’s Dec. 13 Producer Price Index. Nonresidential construction materials are down 0.6 percent for the month and are 0.7 percent lower than the same time last year.

“November represented another month of remarkable stability for construction input prices,” said Associated Builders and Contractors (ABC) Chief Economist Anirban Basu.

“Although many investors predicted significant inflation this year due to expansionary monetary policies in much of the developed world, there continues to be a lack of significant inflationary pressures both globally and nationally.”

Overall, the nation’s wholesale goods prices expanded 0.2 percent in November, but are down 0.9 percent year over year.

“Next year is unlikely to offer as much stability as 2013,” Basu said. “Global economic growth is set to accelerate and the apparent budget deal in Congress should produce greater certainty among businesses, helping improve an already benign national economic forecast. Tension in the Middle East also continues to be a consideration. Together, these factors suggest materials price increases may be at least slightly more rapid in 2014.”

The following materials prices increased in November:

•Fabricated structural metal products were up 0.1 percent for the month and 0.3 percent year over year.

•Softwood lumber prices increased 2.6 percent on a monthly basis and are up 12.8 percent year over year.

•Natural gas prices were up 1.9 percent for the month and 3.3 percent on an annual basis.

• Nonferrous wire and cable prices rose 0.2 percent on a monthly basis and are down 3 percent year over year.

•Iron and steel prices were up 1.8 percent for the month and are down 0.1 percent compared to the same time last year.

•Prices for plumbing fixtures and fittings inched up 0.1 percent in November and are up 1.6 percent year over year.

•Steel mill products prices increased 0.8 percent in November but are down 0.6 percent compared to the same time last year.

The following construction inputs experienced price decreases in November:

•Prepared asphalt, tar roofing and siding prices were down 3.8 percent for the month and 0.3 percent year over year.

•Crude petroleum prices fell 10.3 percent on a monthly basis but are up 0.9 percent year over year.

• Crude energy prices decreased 5.7 percent in November but are up 0.6 percent compared to the same time last year.

•Concrete products prices were flat in November and are up 2.8 percent year over year.

To view the previous Producer Price Index report, click here.

ABC Reports: Construction Materials Prices Remain Flat In September

CEU2“If the United States were to find a more permanent solution for its budgetary issues, the pace of materials price increases likely would accelerate.” —ABC Chief Economist Anirban Basu.

Employment-October 2013Construction materials prices rose only 0.1 percent in September and are up just 0.6 percent year over year, according to the Oct. 29 Producer Price Index release by the Department of Labor. Nonresidential construction materials were unchanged for the month and are 0.1 percent higher than one year ago.

“Despite surging stock and asset prices, geopolitical uncertainty in many parts of the world and the ongoing extraordinary monetary stimulus in the United States, construction materials prices have remained remarkably stable,” said Associated Builders and Contractors Chief Economist Anirban Basu. “This trend stands in stark contrast to the volatility experienced throughout much of this decade, including the growth in prices in 2004, 2007 and 2008.”

Overall, the nation’s wholesale goods prices fell 0.1 percent in September and are up 0.3 percent year over year. In large measure, this reflects a U.S. economy that continues to struggle to expand at a pace greater than 2 percent.

“Uncertainty emanating from Washington D.C., may temper the dramatic turnaround suggested by other economic indicators, such as Europe coming out of a recession and growth in China firming up,” Basu said. “If the United States were to find a more permanent solution for its budgetary issues, the pace of materials price increases likely would accelerate.

“That said, this recent streak of month-to-month stability may continue,” Basu said. “Similar to September, the majority of nonresidential construction-related categories saw price changes of less than 1 percent in absolute value. More specifically, iron and steel, asphalt, tar roofing, siding and steel mill products all changed less than 0.4 percent.”

The following materials prices increased in September:

Fabricated structural metal product prices edged up 0.2 percent and have risen 0.1 percent on a year-over-year basis.

Softwood lumber prices climbed 1.2 percent and are 9.8 percent higher than one year ago.

Nonferrous wire and cable prices rose 0.1 percent, but are down 3.4 percent from September 2012.

Steel mill products prices edged 0.3 percent higher, but are 4.4 percent lower than one year ago.

Natural gas prices grew 0.2 percent in September and are 25.8 percent higher than September 2012.

Crude petroleum prices rose 0.6 percent and are up 7.9 percent year over year.

Crude energy prices expanded 2 percent in September and are 9.7 percent higher than last year.

A number of key construction inputs did not experience price increases for the month:

Prices for plumbing fixtures and fittings decreased 0.3 percent, but are up 1.7 percent on a year-over-year basis.

Concrete products were unchanged in September and are up 3.1 percent on a yearly basis.

Prices for prepared asphalt, tar roofing, and siding fell 0.1 percent for the month, but are 2.9 percent higher than September 2012.

Iron and steel prices decreased 0.3 percent and remain 3.9 percent lower than the same time last year.

To view the previous Producer Price Index report, click here

ABC Reports: Construction Materials Prices Remain Stable, Rise Only 0.3 Percent in August

CEU2“In a world characterized by additional looming warfare, fluctuating global currencies, rising U.S. interest rates and plunging gold prices, one would expect much more volatility in materials prices.” —ABC Chief Economist Anirban Basu.

Construction materials prices rose only 0.3 percent in August and are up 1.4 percent year over year, according to the Sept. 13 Producer Price Index release by the Department of Labor. In addition, nonresidential construction materials increased 0.5 percent for the month and are 1.2 percent higher than one year ago.

“In a world characterized by additional looming warfare, fluctuating global currencies, rising U.S. interest rates and plunging gold prices, one would expect much more volatility in materials prices,” said Associated Builders and Contractors Chief Economist Anirban Basu. “Despite all of those shifting factors, construction materials prices remain remarkably stable, which is noteworthy given the price volatility experienced in 2004 and 2008.

PPI-September 2013 FINALOverall, the nation’s wholesale goods prices rose 0.3 percent in August and are 1.4 percent higher year over year.

“The outlook for the global economy is now improving,” Basu said. “Europe has exited its recession, and growth in China appears to be firming. The consensus 2014 forecast for the United States also calls for more rapid growth, implying that the pace of materials price increases is likely to accelerate.

“That said, relative stability in month-to-month prices may continue,” Basu said. “It is worth noting that the monthly change in prices was less than 1 percent in absolute value for many categories, including iron and steel, concrete products and steel mill products.”

The following materials prices increased in August.

  • Fabricated structural metal products, which edged up 0.2 percent and have risen 0.2 percent on a year-over-year basis.
  • Softwood lumber prices, which climbed 2.4 percent after falling for three consecutive months and are 9.9 percent higher than one year ago.
  • Nonferrous wire and cable prices, which rose 0.3 percent but are down 3 percent from August 2012.
  • Steel mill products prices, which edged 0.1 percent higher but remain 3.4 percent lower than one year ago.
  • Concrete products, which are 0.1 percent higher for the month and are up 3.1 percent on a yearly basis.

A number of key construction inputs did not experience price increases for the month.

  • Crude energy prices fell 2.7 percent in August but are 10.3 percent higher annually.
  • Crude petroleum prices fell 1.2 percent.
  • Prices for plumbing fixtures and fittings decreased 0.6 percent but are up 2.4 percent on a year-over-year basis.
  • Prices for prepared asphalt, tar roofing, and siding fell 0.8 percent for the month but are 5.4 percent higher than August 2012.
  • Iron and steel prices decreased by 0.1 percent and remain 3.4 percent lower than the same time last year.

To view the previous PPI report, click here