ABC: October Construction Materials Prices Unchanged, Energy and Lumber Prices Fall

WASHINGTON, Nov. 13-Construction input prices remained virtually unchanged in October compared to the previous month, according to an Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics' Producer Price Index data released today. Nonresidential construction input prices increased 0.2% for the month.

Both overall and nonresidential construction materials prices are 11.5% higher than one year ago. Prices decreased in 2 of the 3 energy subcategories last month. Crude petroleum prices were down 10.3%, while unprocessed energy materials prices fell 7.7%. Natural gas prices increased 3.7% in October.

"Construction input prices were unchanged in October due to falling oil and lumber prices," said ABC Chief Economist Anirban Basu. "Nonresidential construction input prices, which are less impacted by lumber than residential input prices, increased modestly for the month and are still up a scorching-hot 11.5% year over year.

"With tariff-affected materials like iron, steel and copper still experiencing rapid price escalation, nonresidential input prices will likely continue to increase in the months ahead," said Basu. "Despite rising materials prices, however, contractors remain relatively sanguine about their profit margins, according to ABC's Construction Confidence Index."