Prices of construction materials up in March

 

construction materials increases

 By Czeriza Valencia (The Philippine Star) Updated April 22, 2012

MANILA, Philippines - Prices of construction materials in the National Capital Region (NCR) grew at a faster rate in March from February because of increases in the prices of electrical, masonry, painting, plumbing and miscellaneous materials, the National Statistics Office (NSO) reported.

The Retail Price Index of selected construction materials in the NCR rose to 170.6 in March from 165.5 in the same period last year. This translates to a faster annual growth rate of 3.1 percent in March from 2.9 percent in February. 

The electrical materials index grew by 2.5 percent in March from one percent in February; masonry materials, 1.2 percent from 0.7 percent; painting materials and related compounds, 4.4 percent from 4.3 percent; plumbing materials, 3.3 percent from 2.1 percent and miscellaneous construction materials, 14.6 percent from 13.7 percent.

Slower annual growth, however, was recorded in the index of carpentry materials at 2.3 percent in March from 3.9 percent in February. The tinsmithry index registered lower negative growth of -2.4 percent in March from -1.7 percent in February.

On a month-on-month basis, prices grew at a faster rate of 0.6 percent in March from 0.4 percent in February.  

The monthly gain in electrical materials index increased to 1.3 percent in March from 0.7 percent in February; masonry and plumbing materials, 0.6 percent from corresponding previous month’s growth rates of 0.2 percent and zero; and painting materials and related compounds, 0.8 percent from -0.1 percent.

The carpentry materials index grew at a slower at 0.1 percent from 0.3 percent month-on-month.

The growth in miscellaneous construction materials index remained at 1.6 percent while that the tinsmithry materials index further dropped to -1.0 percent from -0.4 percent month-on-month.

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 Reaction

               Every year, there are always news about the increase of prices. It is whether in the aspect of tuition fees in school, the increase of oil prices and most of all, prices of food and so on. But as to the article that was shown, the increase of prices in construction materials is shown in NCR. 

               As the prices in construction materials increased in NCR, it doesn't only affects the region but also it gives us knowledge and view that all goods can increase, small or big, luxurious or not. The law of demand says that as the price of the good rises, the quantity demanded of a good falls. This law explains it all. Construction materials increased in NCR, thus it points out that there is a great possibility that consumers may buy less the construction materials. Or if they will, consumers will buy a lesser quality product of the construction materials. Building houses or the likes will be affected too. For example, if a company will construct residential houses, they will sell those residential houses in a higher amount. People will refuse to buy those residential houses and the company will not get their profit. And if that happens, unemployment will be possible too. There will be some construction workers who will be fired for the event. The business firms and the consumers will all be affected by the increase that happened.

               In the price increase that happens to our world, we always complain about it. But we don't see the bright side of it. As the price increases, there are more tax that was given and shared to the society. People will benefit more from the price increase, there will be more government projects that will be implemented. And for the company that we work for, they will get the money or finances to provide for retirements from the price increase. Also companies do replacements of machinery for faster works. When people want to improve their standard of living, we all should expect that the prices will go up. This is the only way business firms can cope up to such demands that consumers wants.