ConDig (16-May-24).  US construction input prices nudged 0.5% higher in April compared with the month prior amid higher energy costs, according to the Associated Builders and Contractors (ABC) analysis of the U.S. Bureau of Labor Statistics’ Producer Price Index data.

Overall construction input costs were also 2.3% higher than a year ago, while nonresidential construction input prices were 2.2% higher. 

Prices increased in 2 of the 3 energy subcategories last month, with crude petroleum prices shooting up 10.6%, while unprocessed energy materials prices surged 8.2%. Natural gas prices were down slightly by 0.9%.

“Construction input prices jumped half a percentage point higher in April and have increased 3.5% over the first four months of the year,” said ABC chief economist Anirban Basu. “While iron, steel, asphalt and gypsum product prices fell in April, oil and copper prices surged, driving the monthly increase. Rising input prices will put pressure on profits at a time when nearly 1 in 4 contractors expect their margins to contract over the next two quarters, according to ABC’s Construction Confidence Index.”

ABC noted that the rise was another sign that inflation is accelerating and suggests that interest rates are set to stay higher for longer.

Copper wire and cable prices were up 0.7% month-on-month; brick and structural clay tile prices were 0.4% higher; plumbing fixtures 0.2% up and construction sand 0.7% higher. 

Meanwhile, hot rolled steel bards and plate costs were down 2.4%; steel mill products 2.7% down and prepared asphalt, tar roofing and siding products were down 2.1%.