By Allen-Villere Partners
THE PULSE: CONSTRUCTION MATERIALS MARKET ANALYSIS
- The Federal Reserve has slashed rates by 50 basis points in September and 25 basis points in November. A third cut is expected in December, with markets anticipatinganother 25 basis point cut
- The current annual inflation rate increased to 2.7% in November from 2.6% in October. This is up from the September low of 2.4%, the lowest in 2024. The Consumer Price Index (CPI) decreased slightly in November to 315.49 from the October high of 315.66
- The continuation of inflated housing prices and the pace of the Fed’s rate cuts are all things to watch in the months ahead as they will have a significant impact on the overall economy
- Both Concrete Products and Construction Aggregates prices increased slightly month over month m November, up 0.5% and 0.6%, respectively
- ABC’s Construction Backlog Indicator remained steady with a monthly reading of 8.4 months in both October and November. This is down 0.1 months from November 2023, which was 8.5 months
- The Infrastructure Investment and Jobs Act has provided a safety net to the Construction Materials industry by increasing infrastructure investments which will help offset the slowdown in residential construction that was driven by higher interest rates and a slowing overall economy
