Construction Materials Prices Edge Higher in August

As the temperatures inched up in the last full month of the summer, so did the prices of construction materials.

Construction materials prices edged up 0.2 percent in August, according to the September 16 producer price index (PPI) report by the U.S. Labor Department. Prices are 3.6 percent higher than one year ago.

Nonferrous wire and cable prices increased 1.8 percent for the month and are up 8.7 percent compared to August 2009. Prices for plumbing fixtures and fittings were up 0.6 percent in August and up 1.2 percent from the same time last year. Prices for concrete products inched up 0.5 percent for the month, but are down 1.1 percent from August 2009 levels.

Softwood lumber prices slid for a third straight month, down 3.1 percent in August. However, prices are still 6.8 percent higher on a year-over-year basis. Iron and steel prices were down 1.5 percent in August, the third straight monthly price decrease. But, prices are still 18.2 percent higher than they were one year ago. Steel mill product prices were down 3.9 in August, but were still up 17.1 percent from last August. Prepared asphalt, tar roofing and siding prices slipped 0.9 percent in August, but were up 8.6 percent over the last 12 months. Prices for fabricated structural metal products decreased 0.2 percent for the month, but were up 2.8 percent compared to August 2009.

Crude energy prices increased 0.5 percent in August and were up 18.2 percent compared to the same time last year. Crude petroleum prices were up 1.8 percent in August and were 11.8 percent higher than prices one year ago. Overall, the nation’s wholesale prices increased 0.4 percent last month and are 3.1 percent higher from August 2009.

“Today’s data support the notion that the nation’s recovery in nonresidential construction is beginning to stall,” said Anirban Basu, chief economist for Associated Builders and Contractors (ABC). “For three consecutive months, prices for softwood lumber, iron and steel have been in decline, signaling a growing lack of demand.”