WASHINGTON (Aug. 13, 2024) — Construction input prices increased 0.4% in July compared to the previous month, according to an Associated Builders and Contractors (ABC) analysis of U.S. Bureau of Labor Statistics Producer Price Index data released today. Nonresidential construction input prices also increased 0.4% for the month.
Overall construction input prices are 1.1% higher than a year ago, while nonresidential construction input prices are 0.8% higher. Prices increased in all three energy subcategories last month. Natural gas prices were up by 13.3%, while unprocessed energy materials and crude petroleum prices rose 6.2% and 5.5%, respectively.
“Construction input prices increased in July, ending a streak of two consecutive monthly declines,” said ABC Chief Economist Anirban Basu. “Despite the monthly uptick, which was largely driven by higher petroleum and natural gas prices, input prices are up just 1.1% year over year. The lack of materials price escalation over the past 12 months is a welcome development for contractors, just 34% of whom expect their profit margins to expand over the next six months, according to ABC’s Construction Confidence Index. Ongoing input price moderation, along with the prospect of lower interest rates by the end of the third quarter, should bolster contractor sentiment in the coming months.”
