According to preliminary data from the Philippine Statistics Authority (PSA) released on Monday, wholesale prices of construction materials in Metro Manila fell to a four-month low in February.
The wholesale price index for construction materials in the National Capital Region (NCR) rose 5.2% year-on-year in February, down from 5.3% in January but more than 2% logged in February 2021.
The February reading was equal to the growth rate posted in December. Both months represent the lowest rate of 4.7% reported in October 2021.
Year-to-date, bulk construction material prices rose 5.3%, compared to 1.6% in the previous year.
The PSA said slower growth was driven by prices of concrete products and cement, which fell to 3.3% in February from 3.5% in January. There was also the posting of hardware slow growth (3.5% to 3.2%); Glass and glass products (14.4% to 1.4%); And casement of doors, jams and steel (2.9% to 2.2%).
Price increases for sand and gravel have accelerated (2.1% to 2.2%); Plywood (4.1% to 3.1%); Reinforcement and structural steel (7.0% to 7.2%); Electrical work (9.2% to 8.5%); Plumbing fixtures and accessories / water works (5.4% to 6.6%); Painting work (4.2% to 4.5%); PVC pipes (4.2% to 5.3%); And fuels and lubricants (26.6% to 31.87%).
Asian Institute of Management economist John Paolo Rivera said in a text message, “February has been facilitated by the existing and adequate supply of purchased goods by stabilizing supplies despite the limitations of the supply chain due to epidemics and war in Eastern Europe.”
JAN. Retail price increase
Separately, the rise in retail prices of construction materials in the NCR reached its highest level in three-and-a-half years in January, the PSA said on Monday.
The NCR construction materials retail price index rose 3% in January from 2.7% in December and 1.2% in January 2021, the PSA said.
This was the largest increase in the index in 42 months, or since the 3.3% reading posted in July 2018.
Price increases for most product groups accelerated in January. The inflation rate for miscellaneous construction materials was 4.4% in January as against 3.6% in December. Tinsmith materials were also more expensive (3.6% to 4.2%); Plumbing materials (3% to 3.8%); Electrical materials (2.8% to 2.5%); And masonry materials (1.6% to 2%).
Mr Rivera said the jump in January was due to ongoing construction in both the private and public sectors.
“Due to the limited supply and supply constraints in the world, there is pressure to increase prices as construction activity intensifies,” he added.
The wholesale price index indicates large purchases by major construction companies and property developers and serves as a key indicator for the future activity of those industries.
Meanwhile, retail construction prices reboundflect demands from small scale building projects, such as small contractors. – Meridel Irish U. Catilogo