Bulk prices of building materials in Metro Manila grew in May, with steady retail prices
The Philippine Statistics Agency (PSA) reported on Friday that wholesale price growth in Metro Manila’s building materials has further eased in May, with its slowest in three months, while retail price growth has stabilized.
According to preliminary data, the PSA shows that the wholesale price index of building materials (CMWPI) for the National Capital Region (NCR) (NCR) has increased year-on-year, cooling from 0.3% in April to 0.2% in May.
Reading in May is significantly lower than the 0.6% increase released in May 2024.
This is also the year-on-year growth in February without annual growth in the past three months.
To date, the average growth rate of CMWPI is 0.2%, significantly lower than the 0.9% growth in the same period last year.
“The decline in CMWPI’s annual growth rate is mainly due to a decrease in annual growth rate of the concrete product index, which trended in May from 0.5% last month,” PSA said in the report.
Concrete products account for 45.7% of the index.
Slower growth was also recorded in tiles: (3.6% in April 2%), electrical engineering (0.4% in 0.3%).
Meanwhile, the following commodity records saw faster annual declines: fuel and lubricants (-4.7% form-4%), reinforced steel (0.6% of -0.9%) and cement (-1.4%).
On the other hand, the hardware index (0.1% 0.4%), doors, jambs and steel casings (0.4% 0.4% 0) and PVC pipes (0% 0%) recorded stronger growth.
In another PSA report, the Building Materials Retail Price Index (CMRPI) stabilized at 1% in May from April and a year ago.
The results for CMRPI in May were the lowest in 14 months, or 0.6% in March 2024.
In the five months ending May, the CMRPI of NCR averaged 1.1% from 1% from January to May 2024.
CMRPI is based on the constant price in 2012, while CMWPI is based on the constant price in 2018.
PSA attributes steady growth to slower annual growth rates in the following commodity groups: woodworking materials (0.1% in May, from 0.4% in April), painting materials and related compounds (2.4% of 2.4%), pipe materials (1.5% of 0.5% of 1.5%) and canned materials (1.3% of 1.3%).
Meanwhile, among the seven commodity groups of CMRPI, masonry materials (1.1% of 0.6%) and other building materials (0.3% of 0.4%) grew faster annually.
Nicholas Antonio T. Mapa, senior economist at Metropolitan Bank & Trust Co., said he expects moderate growth in building prices to reflect strong but gentle demand for construction activity.
“A further reduction in borrowing costs may help stimulate increased demand for construction projects and activities in the coming months,” he said in a Viber message.
At its policy meeting in April, the central bank cut borrowing costs by 25 basis points (BPS), thus restoring its easing cycle. So far, central banks have lowered key interest rates by 100 basis points since the start of their easy cycle in August 2024. Abigail Marie P. Yraola
