Material prices spike
Construction input costs climbed again in February as Middle East conflict pushed up oil, metal and building-material prices—low‑grade lumber in particular surged on tight supply and higher freight rates, complicating job budgets. Consumer sentiment fell sharply in March, which could make customers more price‑sensitive on renovation projects. ( )
Associated Builders and Contractors’ March 18 analysis shows construction input prices rose 1.3% in February and are 3.1% higher than a year earlier. (abc.org) ABC’s data also puts the January–February 2026 annualized increase at 12.6%, highlighting how fast costs accelerated at the start of the year. (woodfloorbusiness.com) Fastmarkets reports its low‑grade lumber composite (LGLCP) climbed roughly 27% since January while the framing‑lumber composite rose about 14%, narrowing the spread to its smallest level since May 2024. (fastmarkets.com) Benchmark lumber traded near $595 per 1,000 board feet on March 27, 2026, even as industrial pallet‑lumber markets tightened with Southern Yellow Pine #3/#4 supplies described as constrained in early 2026. (tradingeconomics.com) Brent crude and WTI were trading around $107.58 and $94.17 per barrel respectively on March 27, 2026, underpinning higher diesel and shipping costs. (forbes.com) AAA’s national average gasoline price was about $3.98 per gallon on March 26–27, 2026, while Fastmarkets warns rising diesel and constrained trucking capacity are adding major freight expenses to pallet and lumber logistics. (gasprices.aaa.com) The University of Michigan’s final March consumer sentiment index fell to 53.3 on March 27, 2026, a 3.7‑point miss of the 55.5 forecast and below February’s 56.6 reading. (files.advisorperspectives.com) Bloomberg and other outlets reported that the March drop coincided with higher year‑ahead inflation expectations as energy prices rose amid Middle East tensions. (bloomberg.com) ABC’s breakdown shows energy inputs led February’s move, with natural gas up 10.9%, unprocessed energy materials up 6.0% and crude petroleum up 4.7% for the month. (abc.org) Fastmarkets highlights Gulf Coast chemical producers and pallet buyers as especially exposed, prompting procurement shifts toward regional sourcing and higher ISPM‑15 inventory holdings to manage pallet supply risk. (fastmarkets.com)
