An Associated Builders and Contractors analysis of information provided by the Bureau of Labor Statistics shows construction material prices increased 0.9% from March to April, according to www.abc.org. On a year-over-year basis, the price of construction materials increased 2.4%.
Nonresidential construction material prices increased 0.9% from March to April and increased 2.8% compared with one year ago.
"Even though April was the third consecutive month that input prices increased and overall materials prices remained elevated, there is little reason for contractors to be on high alert," says ABC Chief Economist Anirban Basu. "The increase in materials prices was primarily driven by higher energy prices. In particular, the price of oil mainly rose for political reasons and therefore is not an indication that materials prices will aggressively increase.
"What's more, the year-over-year increase in construction input prices is a mere 2.4%, which is only slightly higher than overall inflation and a bit lower than wage growth," Basu continues. "With much of the global economy slowing and given ongoing trade tensions between American and Chinese policymakers, it's likely materials price increases will remain modest going forward, even in the context of a robust nonresidential construction sector."