Latest from Construction Data

Photo 43271029 © Junnemui | Dreamstime.com
Photo 25446731 © Parkinsonsniper | Dreamstime.com
Dreamstime M 25446731
Photo 10604186 © 1971yes | Dreamstime.com
Dreamstime M 10604186
Photo 28530176 © Punyafamily | Dreamstime.com
Dreamstime M 28530176
Photo 8891960 © Hanhanpeggy | Dreamstime.com
Dreamstime M 8891960
Photo 142506244 © Arne Beruldsen | Dreamstime.com
Dreamstime M 142506244
Photo 9057145 © Joyfull | Dreamstime.com
Dreamstime M 9057145
Photo 10603262 © Iurii Kryvenko | Dreamstime.com
Dreamstime S 10603262

Monthly Construction Input Prices Rise in January, Says ABC

Feb. 15, 2022
The rise comes amid some price relief in metals like iron and steel.

WASHINGTON, DC — Construction input prices rose 3.5% in January compared to the previous month, according to an Associated Builders and Contractors analysis of the U.S. Bureau of Labor Statistics’ Producer Price Index data released today. Nonresidential construction input prices increased 3.1% for the month.

Construction input prices are up 23.6% over the past 12 months, while nonresidential construction input prices rose 24.3%. Input prices for natural gas and unprocessed energy materials fell for the month by 26.1% and 4.7%, respectively. Crude petroleum prices increased 15.5% in January. All three energy subcategories are up significantly on a year-over-year basis.

“While many economists expect inflation to moderate over the course of 2022, as of now, there is effectively no relief in sight for the nation’s contractors,” said ABC Chief Economist Anirban Basu. “Inflation remains hot, hot, hot, with estimates of price increases repeatedly coming in above consensus expectations. There was a chunky increase in materials prices in January despite lower natural gas prices. There was also a bit of price relief in metals like iron and steel. But that was more than offset by categories registering price increases, including softwood lumber, plumbing fixtures, concrete and crude petroleum.

“It may seem naive given current data readings, but the expectation remains that, at some point later this year, construction materials prices will moderate.” said Basu. “As the pandemic fades, supply chains will become more orderly. There are already indications that shipping costs are headed lower, and contractors remain optimistic, according to ABC’s Construction Confidence Index. Undoubtedly, some project owners will choose to postpone start dates in the hope of securing lower bids during the months ahead. The question is how many months they will need to wait.”

Visit abc.org/economics for the Construction Backlog Indicator and Construction Confidence Index, plus analysis of spending, employment, GDP and the Producer Price Index.

Voice your opinion!

To join the conversation, and become an exclusive member of Contractor, create an account today!