Analysis of the U.S. Bureau of Labor Statistics’ Producer Price Index performed by the Associated Builders and Contractors (ABC) reveals construction input prices fell 0.6% in February and are up 0.4% year-over-year. In comparison nonresidential construction input prices also decreased by 0.6% but are up only 0.3% compared to the same time last year. The 3-energy subcategories declined in January, as well as on a year-over-year basis. Softwood lumber was the only subcategory that rose more than 1%, increasing by 3.9% in February. In his comments on the report’s analysis, ABC Chief Economist Anirban Basu has said the recession in the United States is likely to be short and vicious. Despite this prediction, Basu believes recovery from the current crisis is likely to be rapid once it begins.
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