Some economist have dubbed the current economic troubles “The Great Recession” to differentiate it from the Great Depression of the 1930s. While there are significant differences between the two economic calamities, there is one striking similarity: a sharp and prolonged decline in construction costs.
Materials prices for most products are down sharply from a year ago. However, the rate of decline is starting to slow, and some prices have rebounded from extremely low levels. In particular, stockpiling by China has given a bounce for copper, aluminum and other commodity prices, and lumber prices, after a five-year decline, appear to have finally bottomed out.