Construction material prices rose 0.1% in August and are down 0.7% on a year-over-year basis, according to Associated Builders and Contractors. Prices in August were 39.7% higher than in February 2020.
Nonresidential construction material prices rose 0.2% from July to August and decreased 0.9% compared with one year ago. Softwood lumber prices are down 6.1% year over year and up 3.1% from July to August. Iron and steel prices are down 10% year over year and 1.7% for the month. Natural gas fell 29.8% from July to August and 39% year over year. Crude petroleum fell 4.2% for the month and is down 4% year over year.
“Construction input prices are now down almost a full percentage point over the past year,” said ABC Chief Economist Anirban Basu. “This is a welcome development for contractors, a plurality of whom now expect their profit margins to contract over the next six months, according to ABC’s Construction Confidence Index. Moderating materials price escalation, along with easing labor constraints and the near certainty that the Federal Reserve will begin lowering interest rates at its next meeting, should provide some relief to contractors over the next several months.”
