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Construction materials prices grew by 20% between January 2021 and January 2022

Posted on February 28, 2022   |  

  • In the producer price index for inputs to new non-residential construction, the prices charged by goods producers and service providers grew by 2.6% from December to January and 20.3% over the past 12 months. 
  • The index for new non-residential construction, the fee contractors would charge to erect five types of non-residential buildings, rose by 3.8% for the month and 16.5% over the year.
  • Architectural coatings such as paint had a big price increase of 9.0% in January and 24.3% over 12 months. 
  • The price index for steel mill products grew by  112.7% over 12 months despite dropping by 1.6% in January. 
  • The index for plastic construction products rose by 1.8% for the month and 35.0% over 12 months, the index for diesel fuel grew by 5.1% in January and 56.5% for the year. 
  • The index for aluminum mill shapes grew by 5.6% in January and 32.7% over 12 months, while the index for copper and brass mill shapes climbed 4.1% in January and 24.8% over the year. 
  • The index for lumber and plywood grew by 15.4% for the month and 21.1% year-over-year and other inputs with double-digit increases for the past 12 months include insulation with19.2% gain, trucking with 18.3% gain, and construction machinery and equipment with 11.4% gain.
  • Rising material prices are making it challenging for most firms to profit from any increase in demand for new construction projects, and these increases will hurt the economic case for many development projects and limit the positive effects of the new infrastructure bill. 



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