Construction input prices were unchanged in July relative to the previous month, according to Associated Builders and Contractors. Nonresidential construction input prices fell 0.1 percent for the month.
Overall construction input prices are 3.1 percent lower than a year ago, while nonresidential construction input prices are 2.7 percent lower.
One exception is the prices for construction equipment, which increased 1.6 percent in July, compared to June. Compared to July 2022, prices for construction equipment have increased by 9.3 percent. Compared to February 2020, one month prior to the pandemic, prices for construction equipment are up 27.2 percent, according to ABC.
“Many contractors continue to complain about lengthy lead times for equipment as the nation continues to expand spending on infrastructure,” said Anirban Basu, chief economist.
“Goods prices continue to stagnate in the context of improved supply chains and a sluggish global economy,” said 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,” Basu said.
Source: ABC
