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Monthly US construction materials price fall in December
15 January 2025
Data from the US Bureau of Labor Statistics shows construction materials prices dropped 0.2% in December 2024 but remain elevated nearly 1% year over year.
Graph courtesy Associated Builders and Contractors
The US-based Associated Builders and Contractors (ABC) 鈥� a trade organisation representing more than 23,000 construction firms and contractors 鈥� said dropping energy prices are helping lower inputs.
ABC chief economist Anirban Basu said, 鈥淢uch of the recent moderation can be tracked to lower energy prices; diesel prices, for instance, are down roughly US$0.45/gallon since December 2023.鈥�
Overall, construction input prices are 0.9% higher than a year ago, while non-residential construction input prices are 0.6% higher. Prices increased in all three energy subcategories last month, ABC said in its analysis.
Natural gas prices were up 57.7%, while unprocessed energy material prices increased 10.0%. Crude petroleum prices rose by 0.5%.
Basu added, 鈥淧rices for other inputs, like copper wire and cable or sand and gravel products, have escalated significantly over the past year.鈥�
Despite some sizeable input increases, ABC said contractor confidence remains high.
鈥淭he fact that overall input prices have remained flat in recent quarters is purely good news,鈥� remarked Basu. 鈥淛ust 20% of contractors expect their profit margins to decline over the next six months, according to ABC鈥檚 Construction Confidence Index.鈥�
Table courtesy Associated Builders and Contractors
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