The
price of construction materials is rising again after holding steady in December and January, the Associated General Contractors of America said.
The price of construction materials
is rising again after a steady start to the new year, the Associated
General Contractors of America said.
Citing an analysis of market
information and producer price indexes, the association said prices for “construction
inputs” - all materials used in construction plus items consumed by contractors
- rose 0.4 percent from December to January and 4.5 percent overall during the
past year.
“Cost increases have slowed in recent months but
haven’t disappeared,” said Ken Simonson, the AGC’s chief economist. “In fact,
today’s producer price index report may be the low point, as manufacturers and
commodities markets are signaling that bigger increases may be just around the
bend.”
Already, a number of commodities are seeing
significant cost increases, Simonson added.
“Crude oil and diesel prices have moved up
significantly since the January price index data were collected,” he said. “Producers
of plastic pipe have notified customers of 8 percent increases, effective March
1. And copper futures have jumped from levels of a few weeks ago, making
increases in pipe and wiring prices likely.”