Most construction input and bid prices changed little in October, according to data the Bureau of Labor Statistics (BLS) posted on Thursday. The producer price index (PPI) for new nonresidential building construction—a measure of prices that contractors say they would bid to erect a fixed set of buildings—dipped 0.2%, not seasonally adjusted, from September and rose 1.3% year-over-year (y/y). The PPI for material and service inputs to new nonresidential construction inched up 0.1% for the month but slipped 0.2% over 12 months. Despite the recent stability, both price indexes have risen 37% since the onset of the pandemic in February 2020, far more than the 22% increase in the consumer price index over that span. Inputs with notable 1- or 12-month changes include: diesel fuel, up 11% for the month but down 21% y/y; steel mill products, up 0.7% from September but down 10%, from a year earlier; and copper and brass mill shapes, up 3.1% and 14%, respectively. AGC posted tables of construction PPIs.
“Voters November 5 approved 77% percent of 370 state and local ballot initiatives that are expected to generate $41.4 billion in new and renewed funding for roads, bridges, trails, and rails, according to initial results compiled by the American Road & Transportation Builders Association,” ARTBA posted on November 6. “Some revenue will be available immediately through bond agreements, while most will be generated through sales, property, or other taxes collected gradually over as many as 30 years…, with 23 states approving at least one statewide or local question.”
“As of today, there have been a total of 46 wins out of 53 measures for public transit in 2024, an 86.7% win rate,” the American Public Transportation Association posted on November 6. “We have results thus far for 25 out of 26 measures in the general election supporting public transit, adding to the 27 public transit measures already passed by voters this year. You can find results for ballot measures on our 2024 election scorecard.” The largest win for transit construction was arguably the announcement by New York Governor Kathy Hochul on Thursday “to begin implementing congestion pricing in New York City by early January….That plan also includes…$15 billion in mass transit funding to support the [Metropolitan Transportation Authority (MTA)’s] current capital program. Additionally, Governor Hochul committed to funding the proposed 2025-2029 MTA capital plan that was approved by the MTA Board in September.”
Ballot measures for funding school construction had mixed results. “The biggest of all those proposals turned out to be a dud,” Education Week reported on November 8. “The Houston school district put forward two ballot measures totaling $4.4 billion in bonds—$3.96 billion for school construction and maintenance, and another $440 million for technology and equipment for classrooms. But roughly 58% of voters rejected both proposals…The news for proponents of improving school buildings was rosier in California, where nearly 57% of voters approved $8.5 billion in bonds to fund construction projects for K-12 schools, plus another $1.5 billion for community colleges….In Round Rock, Texas,…voters approved three proposals totaling $932 million in bonds for replacing equipment, building classroom additions, and modernizing school buildings.” The Denver Post reported on November 6, “Colorado voters on Tuesday greenlit billions of dollars in spending by school districts,” with bond proposals of close to $1 billion each passing in the Denver, Aurora, and Cherry Creek districts.
“Year-to-date ending in September, the total number of multifamily permits issued nationwide” fell 16%, the National Association of Home Builders posted today. “Seventeen states recorded growth in multifamily permits, while 32 states and the District of Columbia recorded a decline. Georgia reported no change. Rhode Island (+135%) led the way, [while D.C.] had the biggest decline” (-71%). Among the top 10 metros by number of multifamily permits year-to-date, permits jumped 51% in the largest metro, New-York-Newark-Jersey City, N.Y.-N.J., but declined in the remaining nine.
“Economic activity in the services sector [covering 18 sectors] expanded for the fourth consecutive month in October,” the Institute for Supply Management reported on Tuesday. Construction was among 15 sectors reporting paying higher prices for materials and services and was among sectors reporting growth (14 sectors) and increases in business activity (9), new orders (12), inventories (10), and employment (9), along with decreased order backlogs (9) and slower supplier deliveries (12). Items significant for construction reported up in price include copper wire and steel products (2 months in a row). Price declines were reported for diesel fuel. Lumber was reported both up and down in price (2 months). Items listed in short supply include construction contractors, electrical equipment (5); high voltage breakers, and transformers (5).
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