ConDig (14-Jun-17).  Construction material prices held firm in May after posting increases over the past five months, but were up 3.4% on the year ago period, according to analysis of  Bureau of Labor Statistics data by Associated Builders and Contractors (ABC).

Nonresidential construction material prices were also unchanged on a monthly basis but increased by 3.1% on the same period last year.

Crude petroleum prices posted a significant change in May, with prices falling 19.6% from April’s level, while natural gas prices jumped up 66% on a year ago.

Other materials that saw prices rise last month were steel mill products at 1.1%, plumbing fixtures and fittings at 1.4%, softwood lumber at 2.2%, iron and steel at 0.2% and fabricated structural metal products at 0.6%.

“Since March 2016, construction input prices have generally been on the rise,” said ABC chief economist Anirban Basu.

“Many commodity prices established their cyclical nadir during last year’s first quarter, with prices then surging higher for a time. There were a number of factors at work, including stronger growth in parts of Europe and Asia and coordinated efforts by producers to curtail production and support higher prices.”

He added that construction material prices could be poised to ease back in the coming months amid lower commodity prices on slower domestic and global economic growth.

“The US economy in particular does not appear positioned for the rate of growth many had anticipated at the beginning of the year. The Organization for Economic Cooperation and Development recently revised America’s growth outlook downward from 2.4% to 2.1% for the current year,” he said.