Materials pricing continues to be steady, with eight in 10 respondents saying that market prices continued to settle in 3Q 2023.

The ‘All work’ Construction Materials Price Index from BEIS continues to see stability, with increases seen earlier in the year offset by a decrease in July and the index remaining the same in August.

The index peaked in July 2022. Figure 25, which uses data from BEIS and the ONS, shows that while significant reductions occurred between July 2022 and August 2023 for materials including fabricated structural steel, concrete reinforcing bars and timber, other products saw increases.

Increases are generally more predictable and less volatile. The CLC’s Product Availability Statement published in September 2023 found, “Price inflation has stabilised. Whereas a year ago we were seeing increases of over 5%, if products are increasing in price, it is now at 1–2%.” It said that the key economic drivers of inflation, increased cost of living and higher interest rates affect demand and will remain a significant challenge for construction output for the remainder of the year.

Prices remain significantly elevated compared to pre-pandemic levels, with the BEIS ‘All work’ Construction Materials Price Index showing a 40.7% increase between February 2020 and August 2023.

There are various factors which may lead to increased commodities pricing and raised input and production costs. Read the global tensions/commodities section for more information.