Price growth of building materials in NCR slows

MANILA, Philippines — Retail prices of building materials in Metro Manila posted a slightly lower growth rate in September due to a slowdown in government infrastructure spending amid an ongoing probe on corruption in flood control projects.

Data from the Philippine Statistics Authority (PSA) released yesterday showed that the Construction Materials Retail Price Index (CMRPI) in the National Capital Region (NCR) moved up at a slower pace of one percent in September from 1.1 percent in August.

The September CMRPI growth was also slower than the 1.2-percent uptick posted in the same month last year.

Rizal Commercial Banking Corp. chief economist Michael Ricafort said in an email that the slower growth in construction materials’ retail prices could “reflect some slowdown in government spending especially on infrastructure, in view of the anti-corruption narrative or measures since the SONA (State of the Nation Address) on July 28, amid political noises related to the anomalous flood control projects.”

Ricafort said these developments could lead to slower demand for construction materials.

Ricafort also cited weather-related disruptions as the storms that hit the country from July to September reduced working days and construction activities.

The reduction, however, was offset by reconstruction, rebuilding or repair activities for damaged homes, businesses and infrastructure especially in hard-hit areas.

The PSA said the downtrend in the CMRPI in NCR was primarily due to the decline in prices of carpentry materials at 0.1 percent in September from a 0.3-percent uptick in August.

Also contributing to the downtrend was the slower increase in prices of plumbing materials at 0.1 percent in September from the previous month’s 0.4 percent.

Other commodity groups with slower mark-ups in September from the previous month were electrical materials (1.8 percent from 1.9 percent), masonry materials (1.4 percent from 1.5 percent) and miscellaneous construction materials (0.2 percent from 0.4 percent).