Monthly Construction Input Prices Unchanged in November

WASHINGTON, DC — Construction input prices were unchanged in November compared to the previous month, according to an Associated Builders and Contractors analysis of US Bureau of Labor Statistics’ Producer Price Index data. Nonresidential construction input prices increased 0.1% for the month.

Overall construction input prices are 0.5% higher than a year ago, while nonresidential construction input prices are 0.3% higher. Prices decreased in two of the three energy subcategories last month. Crude petroleum prices were down 3.3%, while unprocessed energy materials prices were down 2.0%. Natural gas prices were up 2.6% in November.

“Construction input prices are up just 0.2% through the first 11 months of 2024,” said ABC Chief Economist Anirban Basu. “However, that encouraging year-to-date price growth primarily reflects declining energy prices and obscures price escalation that has occurred for specific materials. Prices for copper wire and cable and softwood lumber, for instance, are up nearly 12% year over year.

“While input prices have, in total, been well behaved, yesterday’s Consumer Price Index release indicated that economywide inflation reaccelerated in November,” said Basu. “The year-over-year rate of price increase, at 2.7%, remains close to the Federal Reserve’s 2.0% target, yet the recent uptick suggests that inflation may prove more stubborn than previously expected. This rebound in inflation aside, contractors remain optimistic about the coming year, with greater than 60% expecting their sales to increase over the next six months, according to ABC’s Construction Confidence Index.”

Visit abc.org/economics for the Construction Backlog Indicator and Construction Confidence Index, plus analysis of spending, employment, job openings and the Producer Price Index.