Construction material prices increased in July for the first time since April, jumping 0.4% compared to the previous month, according to an Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics data.
Overall construction material prices were 1.1% higher than in July 2023, with nonresidential construction material prices 0.8% higher.
“Construction input prices increased in July, ending a streak of two consecutive monthly declines,” ABC Chief Economist Anirban Basu said in a statement. “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.”
Read the full report here.
