PPI for Construction Materials and Components Decreased Slightly in October

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The seasonally adjusted producer price index (PPI) for materials and components used in construction fell 0.2 percent in October from September, according to www.abc.org. The PPI program measures the average change over time in the selling prices received by domestic producers for their output. 


The index was down 0.3 percent on a yearly basis. Nonresidential construction materials prices fell 0.5 percent in October and were unchanged during the past 12 months. 



"We continue to observe a lack of significant inflationary pressures globally and nationally," says Associated Builders and Contractors Chief Economist Anirban Basu. "Despite ongoing expressions of concern regarding inflation due to stimulus measures being conducted by the U.S. Federal Reserve and other major central banks around the world, the data continue to reflect remarkable stability in construction materials prices. 


"However, there is no guarantee that the stability of materials prices will persist," Basu continues. "The situation in Iran appears to be heating up and that could ultimately translate into commodity supply interruptions, boosting prices in the process. Moreover, U.S. economic growth is expected to accelerate next year, which, all things being equal, tends to push input costs higher."

(From NRCA)


Trenton H. Cotney

Florida Bar Certified Construction Lawyer
Trent Cotney, P.A.
1211 N Franklin St
Tampa, FL 33602




Comments

  1. John KenneyDecember 7, 2013 at 9:09 AM

    I think prices will increase next year, but for a good reason; an increase in work load on the horizon for 2014, especially here in Florida. As long as price increases are planned and consistent rather than reactionary we can adjust our prices and markups accordingly.

    ReplyDelete

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