The wholesale price escalation of construction materials in Metro Manila further subsided in May, marking its slowest pace in three months, while the retail price increase remained stable, the Philippine Statistics Authority (PSA) disclosed on Friday.<\/p>\n
According to preliminary statistics, the PSA indicated that the year-on-year advancement of the construction materials wholesale price index (CMWPI) in the National Capital Region (NCR) dipped to 0.2% in May from 0.3% in April.<\/p>\n
This May figure was considerably lower than the 0.6% rise recorded in May 2024.<\/p>\n
It also represented the minimal year-on-year growth in three months, with February registering no annual increase.<\/p>\n
For the year to date, the May CMWPI growth averaged 0.2%, significantly less than the 0.9% growth from the previous year.<\/p>\n
\u201cThe decline in the annual growth rate of the CMWPI was primarily driven by the slower year-on-year rise of the concrete products index at 0.3% in May, down from 0.5% the month prior,\u201d the PSA stated in the report.<\/p>\n
Concrete products constituted 45.7% of the index.<\/p>\n
A slower rise was also observed in tileworks: (2% in May compared to 3.6% in April), and electrical works (0.3% down from 0.4%).<\/p>\n
Conversely, the following commodities recorded accelerated annual drops: fuels and lubricants (-4.7% from -4%), reinforcing steel (-0.9% from 0.6%), and cement (-1.5% from -1.4%).<\/p>\n
On another note, heightened growth was documented in the hardware index (0.4% from 0.1%), doors, jambs, and steel casement (0.5% from 0.4%), and PVC pipes (0.6% from 0%).<\/p>\n
In a distinct report by the PSA, the construction materials retail price index (CMRPI) held steady at 1% in May, consistent with April and the same month last year.<\/p>\n
The outcome for May\u2019s CMRPI was the lowest seen in 14 months, since the 0.6% in March 2024.<\/p>\n
In the five months leading up to May, the CMRPI in NCR averaged 1.1%, up from 1% in January-May 2024.<\/p>\n
The CMRPI reflects 2012 constant prices, while the CMWPI corresponds to 2018 constant prices.<\/p>\n
The PSA credited the stable growth to more gradual annual rises in the following commodity categories: carpentry materials (0.1% in May from 0.4% in April), painting materials and related substances (2.1% from 2.4%), plumbing materials (0.5% from 1.5%), and tinsmithry materials (1.3% from 1.5%).<\/p>\n
Meanwhile, among the seven commodity categories in the CMRPI, masonry materials (1.1% from 0.6%) and miscellaneous construction materials (0.4% from 0.3%) exhibited faster annual growth.<\/p>\n
Nicholas Antonio T. Mapa, senior economist at Metropolitan Bank & Trust Co., indicated that he anticipates modest increases in building material prices, reflecting strong yet tempered demand in construction activities.<\/p>\n
\u201cA further reduction in borrowing rates could stimulate a rise in demand for construction projects and activity in the upcoming months,\u201d he mentioned in a Viber message.<\/p>\n