The price of materials and services used in nonresidential construction jumped 1.1 percent last month, outpacing the rise in contractors’ bid prices, according to an analysis by the Associated General Contractors of America of government data released today. Association officials warned that rising materials prices were having an adverse impact on a growing number of construction projects that have suddenly become more expensive.
“Some materials prices have fallen recently but others appear headed for further increases,” said Ken Simonson, the association’s chief economist. “Since these prices were collected, producers of gypsum, concrete, and other products have announced or implemented new increases. In addition, the supply chain remains fragile and persistent difficulties filling job openings mean construction costs are likely to remain elevated despite declines in some prices.”