Overall prices of construction materials are on the rise according to a report released by the U.S. Department of Labor. Prices increased by 0.1 percent in June and are up 1.9 percent from one year ago.
“Prices for inputs to construction industries have now risen in five of the year’s first six months,” said Associated Builders and Contractors Chief Economist Anirban Basu. “This marks a significant departure from the previous year’s remarkable stability.”
“Recent monthly gains have been modest—0.1 percent in June and unchanged in May; however, the surprisingly upbeat economic news from China (Chinese GDP grew 7.5 percent in the second quarter), along with a slew of large construction starts in specific regions of the U.S., suggest that prices may continue to rise—albeit modestly— through the second half of 2014.”
Crude energy materials prices expanded 1.2 percent in June and are 6 percent higher than one year ago. Natural gas prices fell 1.5 percent in June and have now fallen in three of the past four months.
The following materials also saw a price increase:
• Crude petroleum prices increased 3.2 percent in June and are up 5.6 percent from June 2013.
• Crude energy materials prices expanded by 1.2 percent in June and are 6.0 percent higher year-over-year.
• Softwood lumber prices expanded 2.3 percent and are 7.3 percent higher than one year ago.
• Concrete products prices expanded 0.4 percent in June and are up 3.5 percent on a yearly basis.
• Steel mill products prices rose 0.5 percent for the month and are 4.1 percent higher than one year ago.
However, not everything saw a price rise in June. The following materials saw a bit of a decline:
• Prices for prepared asphalt, tar roofing, and siding declined 1 percent for the month and are down 6.6 percent on a year-over-year basis.
• Fabricated structural metal product prices remained flat for the month but have increased 1.3 percent on a year-over-year basis.
• Iron and steel prices declined 0.2 percent in June but are up 4.6 percent from the same time last year.
• Natural gas prices shed 1.5 percent in June but are 12.9 percent higher than one year ago.
To read the full report, click here.