Costs
for a number of construction materials declined 0.3 percent in May, according
to analysis of producer price indexes from the Associated General Contractors
of America.
Costs for a number of construction
materials declined 0.3 percent in May, according to an analysis of producer price
indexes from the Associated General Contractors of America.
“The slowdown in construction input price
increases is a rare and possibly short-lived event,” said Ken Simonson, the
association’s chief economist.
He added that the last time prices rose so slowly
from a year earlier was 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,” Simonson said.
Materials prices are up 2.3 percent from year-ago
levels, and contractors are typically charging 3.1 percent to 4.3 percent more
to build, a historically small increase.
With continued economic troubles in Europe and
slowing demand in China, prices should remain fairly stable, Simonson said.
AGC Chief Executive Officer Stephen E. Sandherr
said that makes it a good time to start private or public construction
projects.
“The price break makes this an ideal time for
both private sector owners and government agencies to start construction,”
Sandherr said. “Taxpayers will get a good deal if Congress can complete work
soon on long-stalled highway and transit funding, and avoid making further cuts
to building and infrastructure construction projects while prices are still
relatively low."
The full index of construction prices is available
from the AGChere .