Construction Costs Rise in MarchA recent report shows that construction materials‚ new vehicles‚ and household furnishings are among the items that have seen the most rapid increases. Prices for food‚ retail fertilizer‚ and restaurant meals also soared compared to a year ago. Even some raw materials‚ like steel‚ remain expensive for contractors. According to the Associated General Contractors of America‚ these materials will cost almost 20 percent more by 2021 than they did in March.
indices for household furnishings‚ apparel‚ new vehicles and medical care climbed 85% in March compared to last yearConsumer Prices rose at their fastest pace in 41 years in March‚ with Prices for food and gas rising as well. The rise in food Prices fueled the increase in the consumer price index (CPI)‚ which was up 8% year over year. Prices for apparel and household furnishings also rose. Meanwhile‚ the cost of groceries climbed. Poultry and fish Prices climbed over 10% a year‚ while pork Prices climbed nearly 15%. A rise in Prices is likely to push up the Federal Reserve's interest rate further‚ despite statements by the Federal Reserve that the current inflation rate is still temporary. Meanwhile‚ President Biden faces slower job growth and higher inflation. Republicans accuse him of provoking the current inflation situation by passing a $1.9 trillion stimulus package to support the economy. The latest inflation data reflect higher Prices for imported goods‚ food and energy. Meanwhile‚ the outbreak of COVID-19 has shut down port operations in the United States‚ meaning consumers may wait months for goods. Although the back-to-school shopping season can be uncertain‚ the results have been generally positive for the retail industry. Household furnishings‚ apparel‚ new vehicles‚ and medical care all saw YoY gains. Indexes for household furnishings‚ apparel‚ new vehicles‚ and medical care climbed 85% in March‚ while medical care and retail sales declined in April. However‚ it is important to note that the consumer's spending is expected to bounce back after COVID-19 subsides. Meanwhile‚ non-essentials accounted for a third of consumer spending‚ with nearly 60% of spending on these items. Consumers are also cautious when it comes to discretionary spending‚ especially when the economy is in a precarious state. This trend is expected to trickle down to ecommerce in the coming months. Although the credit outlook for the emerging markets was generally more positive in March‚ it was weak in April. The highest percentage of executives predicted a decline in profits within six months. The worst six-month outlook for the economy was reported in homebuilders and real estate‚ while over half predicted that profits would decline. However‚ in March‚ S & P Global Ratings reported the most positive outlook for the sector‚ indicating an improving economic environment.
Prices for construction products climbed 85% in March compared to last yearThe increase in building costs is not limited to new homes. Home remodeling projects are increasing‚ too. Prices for construction products rose 85% last March‚ up from March 2017. The increase reflects a wide variety of factors‚ from the availability of materials to the cost of transportation and labor. Fuel Prices and transportation costs rose 15%. Fuel costs are often passed on to contractors through surcharges on freight deliveries. In March‚ Prices for five types of nonresidential building products rose 5.2 percent. The index rose a mere 0.9 percent last month‚ but the price of all construction materials climbed by more than 20 percent over the past year. Meanwhile‚ Prices for lumber and plywood increased by 12.7% and 17.6% over the same period last year. Still‚ despite these increases‚ the outlook remains grim. As a result‚ the Associated General Contractors of America has released an analysis of government data and urged the administration to eliminate tariffs on key construction products. The group is calling for Washington to help the construction industry untangle supply points and remove tariffs. Further‚ it is seeking to ensure the safety of its workers by implementing legislation to reduce the risk of worker injury. However‚ the increase in inventory has dampened consumer sentiment‚ as well as the overall construction industry. Inventories are high in many parts of the country‚ but fortunately the vast majority of these stocks are concentrated in a few markets. The West Coast‚ the Northeast‚ and the Mountain regions had the highest level of unsold construction inventory in March‚ accounting for 56% of the total national unsold inventory. As a result‚ Prices for construction products have increased across the top eight cities‚ with the MMR market demonstrating the highest increase YoY. However‚ in four of the eight markets covered by this analysis‚ new launches decreased significantly. These cities include Chennai‚ Delhi-NCR‚ and Kolkata. But overall‚ Prices of new housing jumped across all markets. These rising Prices are a direct result of supply chain issues and shortages of labor.
Prices for retail fertilizer climbed 85% in March compared to last yearRising demand for fertilizer is forcing price hikes. Prices jumped nearly eighty percent in March compared to last year. The increase was accompanied by rising shipping costs and labor costs. Fertilizer is a globally-exported product and must be transported to remote areas. With rising demand and limited supply‚ the fertilizer industry has been unable to adjust production levels. Several factors contribute to the uncertainty. Supply shortages have led to higher prices. The price of fertilizer rose due to shortage concerns. The war and sanctions in Ukraine have cut off supplies of some agricultural commodities‚ including fertilizers. Meanwhile‚ Brazil is getting its last wave of fertilizer from Russia‚ whose supply could plummet due to the conflict in Ukraine. While Brazil is prepared to import fertilizer‚ there are concerns about how it will be used. Import duties are another factor driving fertilizer prices. The United States imports over half of its fertilizer. This will further restrict supply and drive up Prices for farmers. Furthermore‚ it is important to remember that fertilizer is a global commodity. This means that Prices will go up for producers and consumers in the U.S. and abroad. Despite rising demand‚ American farmers are already aware of the price increase‚ which is affecting their profit margins. The global agricultural industry is in turmoil. Russia has imposed sanctions‚ which have hindered supplies. Meanwhile‚ high demand for fertilizer has forced farmers to lock in price increases for the 2019 and 2022 growing seasons. Farmers are locking in input costs for their crops and are paying more because of high cost of transport and logistics. However‚ the Conzen family in Heinsberg‚ Germany‚ has been farming for five generations. While the Conzen family produces corn‚ beets‚ and cereals for their farm‚ the price of fertilizer has affected the business. The upheaval in Russia has boosted fertilizer Prices globally. This has caused the Prices to rise as farmers are encouraged to use more fertilizer per acre. It has also prompted producers to cut back on production. Meanwhile‚ the world's leading producers of nitrogenous and phosphate fertilizers‚ Russia‚ are struggling to secure supplies. They export most of their output.
Prices for restaurant meals jumped 85% in March compared to last yearAmid rising inflation‚ Prices for restaurant meals have increased sharply‚ squeezing consumers' wallets even further. Increasing costs of commodities and labor force small and national restaurants to pass the costs on to consumers. Chipotle Mexican Grill recently announced that it would raise its menu Prices by 4%. Meanwhile‚ the company raised the average hourly wage for its employees to $15. Government data show that Prices are rising across the board‚ but demand is also sharply higher than supply. The trend has accelerated‚ with Prices at full-service restaurants rising 7.1% in September‚ the biggest jump since September 2016. Overall food Prices are up by 7% and grocery costs have risen by 8%‚ leading consumers to shift spending away from grocery stores and into restaurants. Restaurant owners have raised Prices to compensate for rising costs. Wage rates and producer Prices of food have increased by nearly 12% in the past year‚ and labor costs are up nearly 10%. As wages increase‚ restaurant owners are more likely to attract and retain employees. The food industry is experiencing a perfect storm of crisis. From a pandemic to bottlenecked supply chains‚ rising ingredient costs are pushing menu Prices higher. The BLS reported that pork Prices increased by the highest rate since June 2008. Beef Prices rose by nearly 4%. Whether restaurant Prices are increasing or falling depends on the type of restaurant you choose. If you're not sure‚ check out the menu Prices on the National Restaurant Association's website.
Runaway inflation is crushing American families and our economy.
Under President Biden, Prices are accelerating faster than any time in more than 40 years, sucking up paychecks and draining savings.
Americans can’t afford Democrat one-party rule. — Kevin McCarthy (@GOPLeader) April 12, 2022