Key Construction Materials Prices Drop Slightly in May
The amount contractors pay for a range of key construction materials edged down 0.3% in May and climbed by only 2.3% from a year earlier, according to an analysis of producer price index figures released last week by the Associated General Contractors of America. Meanwhile, the amount contractors charge to construct projects remained largely flat for the month and is up only between 3.1% and 4.3% for the year.
“The slowdown in construction input price increases is a rare and possibly short-lived event,” said Ken Simonson, the association’s chief economist, noting that the last time prices rose so slowly from a year earlier was in February 2010. “Meanwhile, some of the price increases we are seeing for materials like gypsum and lumber reflect a strengthening new residential and commercial remodeling construction.”