Construction Materials Costs Continue to Rise
The price of materials and services used in nonresidential construction continued rising at a double-digit rate in November from a year earlier, propelled by outsized increases in the cost of a variety of building materials, according to an analysis by the Associated General Contractors of America of government data released today. Association officials noted that contractors are having to pay more both for materials and for the subcontractor services they need to finish most projects.
“Although inflationary pressures are cooling in some areas, overall costs for construction are still rising at painfully high rates,” said Ken Simonson, the association’s chief economist. “In addition, subcontractors are reacting to higher materials and labor costs by raising their prices.”