Construction Materials Prices Drop in May

The amount contractors pay for a range of key construction materials edged down 0.3 percent in May and climbed by only 2.3 percent from a year earlier, according to an analysis of producer price index figures released today by the Associated General Contractors of America. Meanwhile, the amount contractors charge to construct projects remained largely flat for the month and is up only between 3.1 and 4.3 percent for the year. “The slowdown in construction input price increases is a rare and possibly short-lived event,” said Ken Simonson, the association’s chief economist, noting 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.” Read the full press release here. The news was covered by the San Diego Daily Transcript and NJ Biz, among others.