Bid Prices Fall 1.4 Percent as Construction Materials and Services Prices Increase 0.2 Percent in July
Construction Material Prices Remain Mostly Flat in the Month of July; Buy America Rules Remain an Ongoing Challenge for Firms as They Try to Find Materials that Comply
The price of materials and services used in nonresidential construction inched up 0.2 percent from June to July, while a government index that measures contractors’ bid prices fell by 1.4 percent, according to an analysis by the Associated General Contractors of America released today. Association officials said contractors are finally seeing some relief from recent supply chain problems and price escalations, but the competitive market means key materials are still very hard to find.
The impacts from the pandemic and Russia’s attack on Ukraine have faded, however, long lead times remain for electrical equipment and construction machinery. Cement, lumber, plywood and asphalt coatings are some of the materials showing persistent price increases.
The producer price index for new nonresidential construction—a measure of what contractors report they would charge to put up a specific set of buildings—fell 1.4 percent in July. That decrease followed no change the month prior and a slight decline in May.