Prices for many construction materials have stabilized and some have begun dropping, although costs still remain higher than since the start of the COVID-19 pandemic, according to industry group analyses of the latest U.S. Bureau of Labor Statistics Producer Price Index data released Aug. 11.
Inputs to nonresidential construction fell by 0.1% in July and were down 2.7% over the past 12 months, according to the Associated Builders and Contractors. But those inputs were still up 39.1% compared to February 2020, before the coronavirus severely impacted supply chains. Anirban Basu, ABC chief economist, attributed the price stagnation to improved supply chains and a “sluggish global economy.” He predicted that most construction material prices, not including energy prices, should be mostly stable in the coming months.