SANTA ANA, CA--Bob Bach, (top right photo) Senior Vice President, Chief Economist, Grubb & Ellis Co., says construction costs are off to the races once again due to the summer spike in the prices of oil and some commodities that are inputs to the manufacture of construction materials.
Both the Consumer Price Index and the Producer Price Index for Finished Goods hit multi-year highs on a year-ago basis in July. But the recent decline in oil and commodities prices and the strengthening U.S. dollar, both related to slower global economic growth, suggest that inflation may cool in the near term.
This should allow the Federal Reserve to keep interest rates low awhile longer.
This should allow the Federal Reserve to keep interest rates low awhile longer.
Chart below shows CPI, PPI & Non-residential Construction Costs% Change Year/Year
Source: U.S. Bureau of Labor Statistics, Grubb & Ellis
Source: U.S. Bureau of Labor Statistics, Grubb & EllisContact: Janice McDill at 312.698.6707. corporatecommunications@grubb-ellis.com.
No comments:
Post a Comment