The largest monthly gain in petroleum prices in over three years caused construction materials prices to expand 0.4 percent in February, ending a six-month streak when prices failed to rise, according to the recent price index release by the Bureau of Labor Statistics. On a year-over-year basis, construction input prices fell 3.9 percent. Nonresidential construction input prices also rose 0.4 percent on a monthly basis and were down 4.9 percent on a yearly basis. “While conventional wisdom suggests that oil and natural gas prices will eventually rise, the adjustment period could be a lengthy one and although crude petroleum prices … Read more

Construction spending rose modestly in January from year-earlier levels despite retreating from a six-year high in December, according to an analysis by the Associated General Contractors of America. Association officials cautioned, however, that those spending gains could be at risk if Congress and the Obama administration fail to address highway funding shortfalls that once again threaten a new road repair season. “Construction continues to expand overall but with a lot of variability by month and segment,” said Ken Simonson, the association’s chief economist. “The generally positive trends are obscured by an unreliable estimate for residential improvements which purportedly shows a … Read more