I just read in Associated Builders and Contractors, Inc., Construction Economic Update that construction materials prices rose 0.7 percent in January – with year-over-year prices rising 1.3 percent.
According to ABC Chief Economist Anirban Basu, “We have been anticipating an increase in construction materials price volatility for several months. Today’s data indicates that ABC’s prediction of increased volatility in 2013 after a period of unusually stable prices in 2012 is proving to be correct.”
Basu continued to say: “Some of the materials experiencing instability relate more closely to residential construction. Because of the severe downturn in residential activity, a certain level of productive capacity was removed from the marketplace.” He also attributed rising petroleum costs to January’s volatility.
In looking forward, Basu said, “The bottom line is materials prices likely will continue to be more volatile this year.
To read ABC’s Construction Economic Updates log onto their site at: http://www.abc.org