Construction Materials Prices Plummet in First Month of 2015
Construction input prices dipped 2% in January and have now failed to rise for six consecutive months, according to the Feb. 18 producer price index (PPI) release from the U.S. Dept. of Labor. On a year-over-year basis, construction input prices are down 3.6%. In addition, nonresidential construction input prices fell 2.1% on a monthly basis and 4.6% on a yearly basis.
“The decline in oil and petroleum prices finally showed up in the PPI data,” said Associated Builders and Contractors Chief Economist Anirban Basu. “According to the Bureau of Labor Statistics, crude petroleum prices fell 30.6% for the month and 54.8% for the year, but other input categories also experienced downward pressure, including nonferrous wire and cable and softwood lumber.