Building Materials Price Inflation: February 2001

The Labor Department's construction materials composite price index increased by 0.3% between January and February. This was the first rise in the composite index after ten consecutive months of decline or no change. On an annual average basis of measure, the composite price index for construction materials rose 0.9% between 1999 and 2000. This February the index was standing 1.6% below its February 2000 average price reading.

Average lumber prices rose by a sharp 1.1% between January and February, after eleven straight months of decline for this product group. Average prices during February 2001 were still 11.0% lower than during the same month of 2000. On an annual average basis of measure, lumber was 5.0% less expensive last year than during 1999 - after rising by the same magnitude the year before.

However, gypsum product prices continued their free-fall during February 2001, dropping 2.0% from the month before. The price index for this product group has now declined for twelve consecutive months -- after soaring to a peak inflation level of more than 20% over the final quarter of 1999. The February 2001 gypsum product price index was 33.3% lower than during the second month of 2000.

Average roofing material prices eased just 0.1% during February after falling 1.5% between December 2000 and first month of the new year. However, prices had risen in eight of the final ten months of 2000, so the tide has evidently turned for inflation in this product group. Still, the Labor Department reported that the February 2001 average price for roofing materials was 5.3% higher than during February of 2000 - a reflection of the degree to which higher oil prices last year impacted prices for a wide range of materials and supplies across the U.S. economy.

Ready-mixed concrete prices rose a sharp 1.8% this February, after easing 0.6% between December and January. Concrete was 3.2% more expensive during February 2001 than during the second month of 2000, after rising by 2.7% on an annual average basis between 2000 and 2001.

Average prices for fabricated structural metal used in construction dropped a slight 0.1% during February after falling 0.2% the month before. Average structural building metal prices this February stood 0.7% lower than during the same month a year earlier. Because of a sharp run-up in prices during the spring and summer of last year, builders had paid an average of 2.6% more for structural steel during 2000 than in 1999.

Ceramic tile product prices fell for the first time in the past five months during February 2001, after having fallen by a moderate 2.5% on an average annual basis between 1999 and 2000. Despite the surprising October 2000-January 2001 run-up, February 2001 average tile prices were still running 2.2% lower than during the same month a year earlier.

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