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MARKET BEATS 11
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Investment in residential building construction permits construction input prices are 2.3 percent higher than a year
increased 1.4 percent to $41.6 billion in the first quarter. Gains ago, while non-residential construction input prices are 2.2
in the single-family homes component (+6.2 percent; +$1.2 percent higher.
billion) more than offset declines in the multi-unit component “Construction input prices jumped half a percentage point

(-3.0 percent; -$647.8 million). higher in April and have increased 3.5 percent over the first four
Investment in the non-residential sector edged up 0.2 months of the year,” said ABC Chief Economist Anirban Basu.
percent to $18.1 billion in the first quarter. Growth in the “While iron, steel, asphalt and gypsum product prices fell
institutional component (+7.2 percent; +$350.8 million) and in April, oil and copper prices surged, driving the monthly
industrial component (+2.0 percent; +$76.5 million) were increase. Rising input prices will put pressure on profits at a
dragged down by the commercial component (-4.1 percent; time when nearly one in four contractors expect their margins
-$389.9 million). Overall, 11 provinces and territories reported to contract over the next two quarters”, according to ABC's
a decrease in commercial construction intentions. Construction Confidence Index.
“Perhaps more importantly for contractors, the overall

Construction material prices rise Producer Price Index reading for final demand goods and
According to the latest Producer Price Index report released services increased 0.5 percent in April,” said Basu. “This is
by the US Bureau of Labor Statistics, the PPI rose 0.5 yet another sign that inflation is accelerating and suggests
percent in April. that interest rates are set to stay higher for longer.”
The producer price index (PPI) report from the Bureau Besides, according to APA, Civil engineering prices rose
of Labor Statistics (BLS) stated that construction materials to 104.1 index points in the first quarter of this year, up one
prices were up 0.3 percent month-over-month in April on a percent on the same quarter of the previous year and 0.2

seasonally adjusted basis. percent on the previous quarter, Statistics Austria announced.
In addition, the change in construction materials prices The construction price index for building construction was
for March was revised from a 0.1 percent decline to a 0.1 2.5 percent higher than in the same quarter of the previous
percent increase. The index of components and materials for year. In civil engineering, costs rose slightly less than in 2023.
construction was up 1.7 percent from its year-earlier level. Compared to the first quarter of 2023, construction prices
Overall prices for processed goods for intermediate demand rose by two percent in the first three months of this year,
were up 0.6 percent for the month. The volatile prices of compared to 1.2 percent in the previous quarter. To put this
processed fuels and lubricants rose 1.6 percent. The overall into perspective: in April, general inflation rose by 3.5 percent
processed goods for intermediate demand index was 0.5 year-on-year, compared to 4.1 percent in March and 4.3

percent lower than its year-earlier level. percent before that.
Softwood Lumber showed a big surge from March to The construction price index for building construction as
April, up 6.2 percent on a seasonally adjusted month-to-month a whole rose to 136.9 points in the first quarter of 2024, up
basis. Still, softwood lumber is still down 4.3 percent for the 2.5 percent on the same quarter of the previous year and 1.9
year, unadjusted. percent on the previous quarter.
On the same annual basis, bolts, nuts and screws showed In building construction, higher prices for construction
the biggest increase, up 9.4 percent. services such as natural and artificial stonework, coatings on

According to analysis from Associated Builders and wood, metal, masonry, plaster, concrete, lightweight panels,
Contractors, a Washington, DC-based trade group, overall electrical installations and gas and water installations were