According to an Associated Builders and Contractors (ABC) analysis of the recently-released U.S. Bureau of Labor Statistics’ Producer Price Index data, construction input prices increased 1.5% in October. Nonresidential construction input prices have increased by 1.4% in the month.
Compared to October 2020, construction input prices are 21.1% higher this year, with nonresidential input prices increasing by 22.3% over this period. Other major price increases since October 2020 include steel mill products increasing by 141.6% and iron and steel prices up 101.5%. The only decrease in prices over this timespan is softwood lumber.
With this dramatic price increases, ABC Chief Economist Anirban Basu seems less optimistic about the construction industry’s rebound compared to his projections in the summer.
“Any notion that the bout of pandemic-induced inflation was simply transitory has gone by the wayside,”…