Construction material prices fell in December 2024

Construction material prices dropped 0.2% in December 2024 and are up 0.9% on a year-over-year basis, according to Associated Builders and Contractors. Prices in December 2024 were 38.6% higher than in February 2020.

Nonresidential construction material prices fell 0.2% from November 2024 to December 2024 and increased 0.6% compared with one year ago. Softwood lumber prices are up 12.9% year over year and up 1.1% from November 2024 to December 2024. Iron and steel prices are down 10.6% year over year and 2.5% for the month. Natural gas rose 57.7% from November 2024 to December 2024 and 22.5% year over year. Crude petroleum rose 0.5% for the month and is down 0.8% year over year.

“Construction materials prices declined slightly in December and are virtually unchanged over the past two years,” said ABC Chief Economist Anirban Basu. “Of course, there is significant variability across input categories. Much of the recent moderation can be tracked to lower energy prices; diesel prices, for instance, are down roughly $0.45/gallon since December 2023. Prices for other inputs, like copper wire and cable or sand and gravel products, have escalated significantly over the past year. For the industry, however, the fact that overall input prices have remained flat in recent quarters is purely good news. Just 20% of contractors expect their profit margins to decline over the next six months, according to ABC’s Construction Confidence Index.”

Date : Jan. 01, 0001