Construction materials costs declined in November, aided by a plunge in diesel prices along with smaller decreases in a variety of other inputs, according to an Associated General Contractors of America (AGC) analysis of federal figures.
The producer price index (PPI) for all construction inputs for the 12 months ending in November rose 1 percent, closely matching the increase in prices contractors charge for new buildings. Between October and November, however, construction materials prices decreased by 1.1 percent, while the prices contractors charge for industrial buildings, new offices and new warehouses was unchanged and down 0.3 percent for new school construction.
Total construction materials prices fell 7.4 percent for the month and 4.0 percent for the year, steel prices fell 1.3 percent for the month and 9.3 percent for the year, copper prices fell 3.3 percent for the month and 0.9 percent for the year and aluminum prices fell 0.8 percent for the month and 3.5 percent for the year.
The overall decrease was offset by increases in prices for gypsum products; wallboard prices increased 0.4 percent for the month and 14.9 percent for the year, lumber and plywood increased 1.7 percent for the month and 9.3 percent for the year and architectural coatings prices were unchanged for the month but increased 10.5 percent for the year.
View the November PPI table here.