Construction input prices posted a 0.6% decline in May, marking the third consecutive month of reduced costs, while nonresidential construction input prices dropped 0.5%, according to new Associated Builders and Contractors analysis.
Construction input prices are now 3.7% lower than a year ago and are continuing to fall. However, much of that drop is tied to energy, steel and softwood lumber, said Anirban Basu, ABC chief economist.
“Beyond those spheres, there is plenty of input price inflation,” said Basu. “With so many public and private megaprojects under development in the United States, it is likely that many input price categories will continue to show inflationary tendencies even if the overall economy dips into recession.”
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