Construction input prices increased 0.5% in April compared with March, according to an Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics Producer Price Index data released today.
Overall construction input prices were 2.3% higher than a year ago.
Compared with March, prices for adhesives and sealants were up 0.1%, concrete products were down 0.2%, and lumber and wood products were up 0.6%.
“Construction input prices jumped half a percentage point higher in April and have increased 3.5% over the first four months of the year,” said ABC Chief Economist Anirban Basu. "Rising input prices will put pressure on profits at a time when nearly 1 in 4 contractors expect their margins to contract over the next two quarters, according to ABC’s Construction Confidence Index."
ABC’s Construction Confidence Index readings for sales and profit margins fell slightly in April but remain above 50, indicating expectations for growth over the next six months.
The full report on construction prices can be found here.
