Construction input prices in the US rose by 0.4% in July compared with the previous month, according to an Associated Builders and Contractors (ABC) analysis of data from the US Bureau of Labour Statistics. Non-residential construction input prices also increased by 0.4%. Year-on-year, overall construction input prices are 2.2% higher, while non-residential costs have risen 2.6%.
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Two of the three energy categories saw increases in July, with crude petroleum up 1.7% and unprocessed energy materials up 0.5%, while natural gas fell 2.1%. Copper wire and cable prices surged 5% during the month and are now 12.2% higher than a year ago.
ABC chief economist Anirban Basu stated that "construction materials prices continued to increase too quickly" and warned that trade policy may keep prices elevated in the coming months, potentially squeezing profit margins. He also highlighted that broader producer prices rose at their fastest rate since March 2022, which could influence the Federal Reserve's decision on interest rates in September. Basu noted that lower borrowing costs are urgently needed, as prolonged high rates would weigh on construction spending.
Source: www.floordaily.net
