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
