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2026-09-16 19:30:12
[Building Material Prices in the Philippine Metropolitan Area Slow in August] ⑴ Data from the Philippine Statistics Authority shows that the retail price index for building materials in the Metropolitan Area slowed to approximately 2% in August, down from approximately 2.1% in July. ⑵ The agency attributed the slowdown to a decrease in the annual growth rate of miscellaneous building materials from approximately 1.8% in July to approximately 1.1%. ⑶ The annual growth rates of the indices for woodworking materials and masonry materials also slowed, falling to approximately 0.6% and 2.3% respectively from approximately 0.9% and 2.4% in July. ⑷ A chief economist at a bank stated in a news report that the lower building material price index in August partly reflects a slowdown in construction activity, including insufficient government spending due to unusual flood control projects, rising office vacancy rates, and increased borrowing costs due to inflation and higher interest rates. ⑸ He believes these factors have cooled construction activity, thereby reducing demand for building materials and retail prices. ⑹ Looking ahead to the coming months, rising global oil prices, higher inflation, and the US dollar near record highs against the peso could push up building material prices. (7) He also pointed out that the government's pursuit of infrastructure spending to stimulate the economy amid geopolitical risks could fundamentally drive a recovery in construction activity and boost demand and prices for building materials.
