Associated Builders and Contractors Report Monthly Construction Input Prices Drop in March

According to an Associated Builders and Contractors (ABC) analysis of U.S. Bureau of Labor Statistics’ Producer Price Index (PPI) data recently released construction input prices fell <-1.0%> in March from the previous month. The aggregate price of inputs to construction is down <-1.9%> year-over-year. Nonresidential construction input prices fell <-1.1%> for the month and <-2.0%> during the past year. ABC Chief Economist Anirban Basu in prepared remarks said, ‘Deflationary pressures are weighing on economies around the world during this period of pandemic. Demand for various items has dried up as much of the global economy remains in a period of suspended animation’. Basu also said that ‘Deflationary pressures are likely to persist into the summer’