ABC: Construction equipment prices continue to rise

According to the Associated Builders and Contractors, construction input prices remained unchanged in July compared to the previous month. Non-residential construction input prices decreased by 0.11% this month.

The overall construction input price decreased by 3.11 percentage points compared with the same period last year, while the non-residential construction input price fell by 2.71 percentage points.

One exception isConstruction equipmentThe price of construction equipment rose by 1.61% in July compared to June. Compared to July 2022, the price of construction equipmentprice increaseAccording to ABC News, construction equipment prices rose by 27.21% compared to February 2020, the month preceding the pandemic.

Chief Economist Anirban Basu stated: “As the nation continues to expand infrastructure expenditure, numerous contractors persist in complaining about excessively long equipment delivery times.”

Basso stated: “InSupply chainAmidst improving conditions and a global economic downturn, commodity prices remain stagnant. The recent positive economic outcomes in the United States are best explained by supply chain improvements. As supply chains normalise, pent-up demand becomes more readily satisfied. This has spurred transaction volumes and economic growth.

“Meanwhile, improvements in the supply chain have helped to suppress prices, resulting in deflation observed in both yesterday's Consumer Price Index data and today's Producer Price Index figures.

Basu stated: “Apart from factors such as geopolitics, weather and investor fervour that exert a significant influence,EnergyApart from prices, the cost of building materials should remain fairly stable over the coming months.”