Construction input prices decreased by 0.3 percent in November compared to the previous month, according to an Associated Builders and Contractors analysis of the U.S. Bureau of Labor Statistics’ Producer Price Index data released Dec. 13. Nonresidential construction input prices decreased by 0.3 percent for the month as well. Inputs to construction are still nearly 39 percent higher than at the start of the COVID-19 pandemic.

Overall construction input prices are 0.8 percent lower than November 2022, while nonresidential construction input prices are 0.4 percent lower. Prices decreased in two of the three energy subcategories in November 2023. Crude petroleum input prices were down 9.5 percent, while unprocessed energy materials prices were down 3.2 percent. Natural gas prices rose 24.1 percent in November.

“Construction input prices declined for the second straight month in November,” said ABC Chief Economist Anirban Basu. “While much of the recent decline is due to record domestic oil production and the resulting precipitous decline in gas and diesel prices, other commodities like iron and steel and lumber products are currently more affordable than they were at the same time last year.

“Falling or, at the very least, stable input prices should help to control construction cost increases in the coming quarters,” Basu added. “This is a welcome development for an industry still dealing with extraordinarily elevated financing costs and rising labors costs due to ongoing worker shortages.”