Wholesale price escalation of construction materials in the National Capital Region (NCR) increased in April, the Philippine Statistics Authority (PSA) disclosed on Friday.
The construction materials wholesale price index (CMWPI) in Metro Manila grew by 0.3% year on year in April, up from the 0.2% increase in March. Nonetheless, this was below the 0.7% rise noted in April 2024.
Over the four months leading to April, Metro Manila’s CMWPI averaged 0.2%, slower than the 1% growth observed during the same timeframe.
The rate recorded in April represented the quickest in nine months, marking an increase since the 0.5% rise in July 2024.
Factors behind last month’s uptick included accelerated growth in tileworks (3.6% from 1% in March), sand and gravel (0.4% from 0.3%), electrical services (0.4% from 0.3%), and painting services (1.1% from 1%).
The year-on-year growth of other commodities remained consistent when compared with the prior month: plumbing fixtures & accessories/waterworks (0.9%) and doors, jambs, and steel casement (0.4%).
In a distinct report by the PSA, the construction materials wholesale price index (CMWPI) in April relaxed to 1%, lower than the 1.2% growth of March. It also declined from 1.2% in April 2024.
Year to date, CMRPI averaged 1.1%, slightly down from 1% growth in January-April 2024.
The April figure was the lowest in over a year or since the 0.6% in March 2024.
The CMRPI is based on 2012 constant prices, while the CMWPI is calculated using 2018 constant prices.
The PSA credited the deceleration in annual CMWPI growth to stagnation in carpentry prices, which decreased by 0.4% in April from 0.7% in March, along with tinsmithry materials dropping to 1.5% from 1.6%.
Commodity categories where rates remained stable included painting materials and related substances (2.4%), plumbing supplies (0.7%), and various construction materials (0.3%).
Jonathan L. Ravelas, senior consultant at Reyes Tacandong & Co., noted that the gradual construction growth could be swayed by several factors such as election prohibitions and tariff risks.
“The prohibition on public projects during the election period can cause delays in construction initiatives and the procurement of supplies. This limitation, intended to avoid the misuse of public funds for campaigning, often results in a temporary deceleration in construction operations. This can influence the demand for construction materials, contributing to the subdued growth observed,” Mr. Ravelas shared in a Viber message.
Mr. Ravelas further stated that tariffs on imported building materials could escalate costs and disrupt supply chains.
“These tariffs generate uncertainty in the market, as firms may encounter increased expenses and delays in material delivery, affecting overall project schedules and budgets,” he remarked. — Lourdes O. Pilar
