Although the cost of construction materials prices rose only 0.1 percent in February, materials prices are still 2.8 percent higher than one year ago, according to a March 17 producer price index (PPI) report by the U.S. Department of Labor (DOL).
“Today’s PPI report is consistent with what has been observed in recent months – construction materials prices are on the rise,” said ABC Chief Economist Anirban Basu. “This is unfortunate because the nation’s nonresidential construction industry remains mired in its slump – a slump associated with declining construction spending and backlog.”
Softwood lumber experienced one of the largest increases in February, up 7.5 percent monthly and 17.7 percent year over year. Iron and steel also continued to rise, seeing a 3.6 percent increase in February and a 13.5 percent increase over February 2009. Fabricated structural and metal products saw a price increase of 0.9 percent on a monthly basis, but they are still down 4.8 percent year over year.
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