The average cost of commonly utilized construction materials expanded by about 1% from March to April, an unmistakable construction group reported on Thursday.
The Associated Builders and Contractors revealed that construction inputs were 0.9% percent more expensive in April than in the earlier month and 2.4% more expensive than in April 2018.
Anirban Basu, ABC chief economist, said the rise was driven mostly by higher energy costs.
“In particular, the price of oil mainly rose for political reasons, and therefore is not an indication that materials prices will aggressively increase,” Basu said.
Of the 11 sorts of construction inputs followed by the ABC, seven rose in cost in April. The biggest month-over-month increments were seen for crude petroleum (up 13.9%), unprocessed energy materials (up 3.7%), prepared asphalt products (up 2.7%) and concrete products (up 1.1%). The biggest decreases, meanwhile, were for natural gas (down 8.7%), iron and steel (down 1.7%) and steel-mill products (down 1.7%).
April was the third consecutive month that input prices expanded on average.
Basu pointed out that, in spite of the fact that costs have been on the rise, the expansion since April 2018 has been just of 2.4%. That is just somewhat higher than rate of expansion and marginally lower than the average rate of wage increases in the same period.
“With much of the global economy slowing and given ongoing trade tensions between American and Chinese policymakers, it’s likely materials price increase will remain modest going forward, even in the context of a robust nonresidential construction sector,” Basu said.