The wholesale and retail price index of construction materials in the National Capital Region (NCR) eased in April compared to the previous month. Data released by the Philippine Statistics Authority (PSA) on Wednesday showed that the wholesale price index of construction materials was at 7.4 percent, lower than the 7.7 percent in March. The lower annual growth of reinforcing and structural steel at 6.5 percent, was the main contributor to the slowdown. Slower growth was also recorded in sand and gravel, concrete products and cement, hardware, plywood, doors, electrical works, plumbing fixtures and accessories and PVC pipes. The construction materials retail price index on the other hand, also slowed down to 2.6 percent from 4.1 percent in March 2023. The PSA said among the commodity groups, miscellaneous construction materials primarily influenced the lower annual growth rate during the month, with an increment of 0.2 percent in April from 6.2 percent the month before. Plumbing materials which grew by 0.7 percent from 2.2 percent in March also contributed to the downtrend. Rizal Commercial Banking Corporation chief economist Michael Ricafort said the lower prices of construction materials during the month could be attributed to the downward correction in global commodity prices of industrial metals such as copper, nickel, iron, and steel, among others. Ricafort said the lower peso exchange rate which is currently at 56.00 levels, also helped ease import costs including those of imported construction materials and their raw materials. “For the coming months, continued increase in infrastructure spending, increased capital spending, expansion plans by property companies and other industries as the economy reopens further towards greater normalcy would still support the demand for construction materials, especially if inflation and interest rates locally and globally continue to ease further in the coming months,” Ricafort said.

Source: Philippines News Agency