A new analysis by the Associated Builders and Contractors (ABC) has found that overall construction input prices are 3.7% lower than a year ago. Derived from new data from the U.S. Bureau of Labor Statistics Producer Price Index, the ABC analysis also found that construction input prices fell 0.6% in May alone compared to the previous month.

The drop was fuelled by a decline in all three energy subcategories between April and May, with crude petroleum falling 10.2%, unprocessed energy materials falling 7.8%, and natural gas prices falling 2.0%.

“The headline numbers suggest broad-based deflation in construction materials prices,” said ABC Chief Economist Anirban Basu about the figures. “But the declines in input prices are less broad than meets the eye. Much of the deflation is tied to energy, steel, and softwood lumber.”

Basu noted that beyond energy, steel, and lumber spheres, there are also notable examples of price inflation. Concrete prices increased 1.1% in May, and over 12% in one year, while the price of construction machinery and equipment is up 9% from one year ago. Brick and structural clay tile prices have also increased by more than 9% in one year.

“In short, there are still supply chain challenges, but a weakening global economy has helped place downward pressure on several traded commodities,” Basu explained. “With so many public and private megaprojects under development in the United States, it is likely that many input price categories will continue to show inflationary tendencies even if the overall economy dips into recession.”

News of the price fluctuations comes weeks after a separate ABC analysis found that construction input prices have dropped to 18-month lows. Last week, meanwhile, we reported on the continued decline of the Dodge Momentum Index, led by poor commercial planning activity.