Building Materials Price Inflation - March 2001

The Labor Department's construction materials composite price index declined by 0.1% between February and March. This followed a slight rise in the composite index the month before, and represents the eleventh time in the past twelve months that construction materials and supplies - taken as a whole - have recorded deflation. On an annual average basis of measure, the composite price index for construction materials rose 0.9% between 1999 and 2000, little changed from the 1.0% inflation rate recorded during the prior year. This March, the index stood 2.1% below its March 2000 average price reading.

Over-the-month price increases were recorded for gypsum products (+4.5%), lumber (+0.5%), and asphalt/tar shingles (+0.2%). The price index for ready-mixed concrete was unchanged between February and March. Average prices declined over the month for structural metal products (-0.3%) and ceramic floor and wall tile (-0.5%).

The average prices for structural metal used in buildings has now declined for three consecutive months, while tile prices have now fallen for two straight months after several consecutive months of price increase. March's increase in average lumber prices was the second monthly rise in a row following eleven consecutive months of easing inflation in this product group. And the sharp rise in gypsum product prices between February and March broke a string of twelve straight months during which average prices declined from the month before.

The price index for gypsum products (-27.9%), lumber (-10.2%), tile (-3.0%), and structural metal (-1.1%) were all lower this March than during the same month of 2000. Average prices received by U.S. manufacturers of asphalt/tar shingles (+5.1%) and ready-mixed concrete (+2.8%), on the other hand, moved higher between March 2000 and March 2001.