Engineering and construction costs increased in January, according to a report released by IHS Markit on January 27. All material categories showed increased prices for the first time since July 2018. The increase marked the third consecutive month of overall rising costs.
The IHS Markit PEG Engineering and Construction Cost Index, which is calculated based on survey data from procurement executives in engineering, procurement and construction firms (EPC), reached 63.1. The materials and equipment index rose 4.9 points, to 68.3, while the subcontractor labor index dropped slightly, to 51.1, from December's 55.4.