Construction material prices increased 1.2% in August and are up 8.9% on a year-over-year basis, according to Associated Builders and Contractors. Prices in August were 55.6% higher than in February 2020.
Nonresidential construction material prices rose 1.2% in August and increased 8.8% compared with one year ago. Softwood lumber prices are down 1.9% for the month and up 11.8% year over year. Iron and steel prices are up 0.9% for the month and 17.9% year over year. Natural gas fell 11.6% in August and is up 0.5% year over year. Crude petroleum rose 5.2% for the month and is up 34.9% year over year.
“Construction input prices surged again in August, and the increases were widespread across materials,” said ABC Chief Economist Anirban Basu. “Prices for iron and steel, softwood lumber, switchgear, copper wire and cable, and several derivative metal products are now up more than 10% year over year. While contractors remain optimistic about their margins, according to ABC’s Construction Confidence Index, ongoing input price escalation is likely to weigh on profitability over the next several months. This is especially true given recent escalation in the trade war with Canada and the fact that oil prices have jumped back above $100 per barrel.”
