Construction Input Prices Rise Again in July

A deeper dive into the recently released Bureau of Labor Statistics (BLS) Producer Price Index (PPI) by the Associated Builders and Contractors (ABC) reveals that construction input prices rose 1.9% in July when compared to those in June.  Among 11 subcategories, four experienced monthly increases, with the largest price increase registered in softwood lumber, which rose 9.8% from June and 25.7% from July 2019. The largest decreases were among three energy subcategories.  In prepared remarks ABC Chief Economist Anirban Basu, said “The global and national economies have been coming back to life despite the lingering pandemic, helping to push construction materials prices higher. However, materials prices are still -2.4% lower than they were a year ago, which is largely a reflection of the massive hit to global and national economic output registered during the second quarter of 2020”.