The increase in the wholesale prices of construction materials sold in Metro Manila was slower last month due largely to the decline in steel prices, according to the latest data released by the Philippine Statistics Authority (PSA).
Based on the preliminary Construction Materials Wholesale Price Index (CMWPI) in the National Capital Region data, the PSA said construction material prices rose by 3 percent in July, slower than the 4.8 percent recorded last year and the 3.2 percent recorded in June.
The CMWPI posted an average growth of 3.3 percent in the January to July period this year.
“Annual declines were still observed in the indices of reinforcing and structural steel at 0.1 percent; and doors, jambs, and steel casement, 0.2 percent,” PSA said.
The PSA said the wholesale prices of concrete products and cement, hardware, lumber and galvanized iron sheets also grew at a slower pace in July. The same trend was seen in the prices of tiles, electrical workers, and plumbing fixtures and accessories/waterworks.
On a monthly basis, PSA data showed that the CMWPI contracted 0.3 percent in July, a reversal of the 0.3-percent hike recorded in June.
PSA data showed that concrete products and cement posted the largest contraction of 1.8 percent in the CMWPI. This was followed by hardware, tiles, electrical works, and plumbing fixtures and accessories/waterworks.
“Also, contributing to the downtrend were the slower monthly upticks noted in the indices of lumber and GI sheets at 0.2 percent and 0.4 percent, respectively,” the PSA said.
The agency said the increments in the indices of sand and gravel and PVC pipes were higher at 0.8 percent and 3.1 percent, respectively.
From monthly declines in the previous month, the indices of plywood rose by 0.2 percent; painting works, 0.4 percent; and fuels and lubricants, 2.2 percent.
The index of reinforcing steel went up by 0.6 percent in July from zero growth in the previous month. The rest of the commodity groups recorded zero growth.
The CMWPI is a variant of the General Wholesale Price Index that measures the changes in the average wholesale prices of construction materials. It is used for the computation of price escalation of construction materials for various government projects.
Image credits: Roy Domingo
