Construction input prices dipped 2 percent in January 2015 and have now failed to rise for six consecutive months, according to the Feb. 18 producer price index (PPI) release from the U.S. Department of Labor. On a year-over-year basis, construction input prices are down 3.6 percent. In addition, nonresidential construction input prices fell 2.1 percent on a monthly basis and 4.6 percent on a yearly basis.
“The decline in oil and petroleum prices finally showed up in the PPI data,” said Associated Builders and Contractors Chief Economist Anirban Basu. “According to the Bureau of Labor Statistics, crude petroleum prices fell 30.6 percent for the month and 54.8 percent for the year but other input categories also experienced downward pressure, including nonferrous wire and cable and softwood lumber.
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