Construction Materials Prices Down Again in November
Construction input prices fell again in November, down 0.8% for the month, according to the Dec. 12 producer price index (PPI) release by the U.S. Dept. of Labor. Prices have fallen in five of the past six months but still are 0.6% higher on a year-over-year basis. Inputs to nonresidential construction fell 1.1% and are unchanged from the same time last year.
“Although there are times when deflation can be a reflection of declining demand for goods and services, the deflation happening now in an array of commodities should be viewed positively, both from the perspective of the broader economy and for nonresidential construction,” said Associated Builders and Contractors Chief Economist Anirban Basu.