Construction material prices rose 0.4% in July and are up 1.1% on a year-over-year basis, according to Associated Builders and Contractors. Prices in July were 39.9% higher than in February 2020.
Nonresidential construction material prices rose 0.4% from June to July and increased 0.8% compared with one year ago. Softwood lumber prices are down 13.1% year over year and 1.8% from June to July. Iron and steel prices are down 9.6% year over year and 1.8% for the month. Natural gas rose 13.3% from June to July and is up 0.1% year over year. Crude petroleum rose 5.5% for the month and is up 10.4% year over year.
“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.”
