The cost of key construction materials dropped for the third consecutive month in July, pushing down year-over-year prices for the first time since 2009, according to an analysis of producer price index figures released today by the Associated General Contractors of America.
However, association officials warned that recent spikes in diesel fuel and steel prices may drive up the cost of construction again, and they urged lawmakers to invest in needed infrastructure projects promptly while prices remain low.
“This price decline may be the last, given the large jumps in diesel fuel and steel prices that have occurred or been announced since the Labor Department collected this producer price data in mid-July,” said Ken Simonson, the association’s chief economist. “If economic growth accelerates, we are likely to see an end to discounted prices for construction activity.”
Read the full press release here. The news was covered by New Orleans City Business, Alaska Business Monthly, Connecticut Business News Journal, Press-Enterprise, Construction Equipment, Reno Gazette Journal, The Greater Binghamton Business Journal, Dayton Business Journal, and ForConstructionPros.