Construction Materials Prices Flatten in September
The amount contractors pay for a range of key construction materials held steady in September but climbed 8.1% from the year-earlier level, according to an analysis of producer price index figures released last week by the Associated General Contractors of America. Meanwhile, the price contractors charge for new nonresidential building construction edged up only 2% to 3% over 12 months, depending on building type.
“Feeble demand for construction is forcing contractors to absorb the bulk of materials price hikes, instead of passing them along to owners,” said Ken Simonson, the association’s chief economist. “This pattern has persisted for more than two years, and many contractors are increasingly at risk of going under.”