WHOLESALE price growth of construction materials in Metro Manila was flat while retail price growth accelerated in December, the Philippine Statistics Authority (PSA) reported on Thursday.
Citing preliminary data, the PSA said the construction materials wholesale price index (CMWPI) in the National Capital Region (NCR) remained at 0.2%, compared with the 1.3% posted a year earlier.
Year to date, the CMWPI averaged 0.6%, significantly lower than the 5.2% a year earlier.
The PSA noted that some sub-indices rose, such as hardware and lumber by 0.7% from 0.5% in the preceding month, and tileworks by 0.4%, compared to 0.3% in November.
“A slower annual decrease was recorded in the index of fuels and lubricants at 1.2% in December 2024 from 1.6% annual decline in the previous month,” the PSA said.
Electrical works price growth was 0.4%, decelerating from 0.5% in November, while structural steel prices declined 0.5%, compared to the 0.1% uptick in the previous month. A steeper decline was seen in plywood, where prices fell 0.5%, compared with the 0.3% decline in November.
Other wholesale indices for commodity groups remained steady.
Diwa C. Guinigundo, country analyst at GlobalSource Partners, said wholesale demand for construction materials in December was relatively steady compared to November as construction activity typically slows during the last quarter of the year.
“I just hope this is not symptomatic of weakening construction activity in general given the report of a potential glut in some high-end segments,” Mr. Guinigundo said via Viber.
The CMWPI is based on constant 2018 prices.
In a separate report, PSA said according to preliminary data, growth in the construction materials retail price index (CMRPI) in Metro Manila accelerated to 1.5% in December from 1.4% in the previous month and 1.4% a year earlier.
The CMRPI averaged 1.2% in 2024, significantly lower than the 2.5% posted a year earlier. This was the weakest reading in five years, or since the 0.7% growth in 2019.
The CMRPI is based on 2012 constant prices.
“The major contributor to the uptrend in the annual rate of CMRPI in NCR was the higher annual increase observed in the heavily-weighted tinsmithry materials index at 2.6% in December 2024 from 2% in the previous month,” the PSA said.
Additionally, electrical materials grew 1.9% in December from 1.8% in November, while masonry materials price growth accelerated to 0.3% from 0.2% a month earlier.
Mr. Guinigundo said the slight increase in retail prices suggests more activity in the smaller construction projects such as housing construction and repairs. — Kenneth H. Hernandez