US construction input prices rose by 2.8pc in June 2021 as nonresidential construction inputs climbed by 2.9pc against the preceding month, according to the US Bureau of Labor Statistics.
Nonresidential construction input prices rose by 24.6pc as total construction input prices rose by 24.8pc, both against the year-ago month. In June 2021, prices for softwood lumber rose by 125.3pc, steel mill products increased by 88pc, iron, and steel rose by 73.2pc, fabricated structural metals climbed by 25pc, crude petroleum climbed by 108.8pc, natural gas increased by 105.9pc, and unprocessed energy grew by 83.5pc, all against the same month in 2020.
In monthly terms, prices for fabricated structural metals, iron, and steel, and steel mill products in June 2021 rose by 5.9pc, 6.4pc, and 6.2pc, respectively.
Associated Builders and Contractors (ABC) Chief Economist Anirban Basu noted that the possibility of inflation could be long-lived is increasing as higher prices in shipping, global supply chain disruptions, higher input prices, and labor shortages affect the construction market. The inflationary risk may have project owners delay start timelines and have the Federal Reserve increase interest rates adding to financing costs.
ABC’s Contractor Confidence Index rose to 8.5 in June 2021 from 8.0 in May and higher than the 8.1 in June 2020.