The amount contractors pay for a range of key construction materials dropped slightly (-0.6 percent) in October but climbed 6.9 percent from the year-earlier level, according to an analysis of producer price index figures released today by AGC. Meanwhile, the price contractors charge for new nonresidential building construction edged up only 3.3 to 4.3 percent over 12 months, depending on building type.
“While the gap is beginning to narrow just a bit, prices for most construction materials have risen far more during the past year than the amount contractors can charge for completing construction projects,” said Ken Simonson, the AGC’s chief economist. “Coupled with weak growth in demand for construction, the price gap is likely contributing to the stagnant employment levels the industry has been experiencing all year.”
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