ABC: Construction equipment prices continue to rise

According to Associated Builders and Contractors, construction input prices were unchanged in July compared to the previous month. Nonresidential construction input prices were down 0.11 TP3T for the month.

Overall building input prices are down 3.11 TP3T from a year ago, and non-residential building input prices are down 2.71 TP3T.

The one exception isConstruction equipmentprices, up 1.61 TP3T in July compared to June.Compared to July 2022, construction equipmentprice inflationwas 9.31 TP3 T. Compared to February 2020, the month before the pandemic, the price of construction equipment was up 27.21 TP3 T, according to ABC.

“As the country continues to expand infrastructure spending, many contractors continue to complain about long delivery times for equipment,” said Anirban Basu, chief economist.”

Basu said, “Insupply chainsImprovements and the global economic downturn continue to stagnate commodity prices.” “Improvements in the supply chain best explain the recent positive economic results in the U.S. economy. As supply chains normalize, unmet demand is more easily satisfied. This drives trading volumes and economic growth.

“Meanwhile, improvements in the supply chain have helped depress prices, leading to deflation observable in both yesterday's Consumer Price Index data and today's Producer Price Index data.

Basu said, “In addition to being heavily influenced by factors such as geopolitics, weather and investor frenzyrenewable energyOutside of prices, construction material prices should remain fairly stable over the next few months.”