Construction equipment prices have not budged since the mid-1990s. Through the record sales of 1998 to the current sales slump, the Bureau of Labor Statistics producer price index has remained remarkably flat. This April, the construction equipment price index was just 0.3% higher than a year ago.
The BLS index generally reflects the manufacturers' transaction price, including heavily discounted sales to rental firms, says Jason Sewell, the BLS economist responsible for the index. "The industry is very competitive and producers cannot make large price changes without hurting demand," he says.