Construction Materials And Services Prices Decline 0.6 Percent In May While Bid Prices Edge Up 0.1 Percent As Supply Chain Improves Broadly
The price of materials and services used in nonresidential construction decreased 0.6 percent from April to May, while an index that measures contractors’ bid prices inched up by 0.1 percent, according to an analysis by the Associated General Contractors of America of government data released today. Association officials said contractors are finally seeing some relief from recent supply chain problems and price escalations but cautioned that some key materials are still very hard to find and warned that new federal Buy America mandates could lead to future price escalations.
“Contractors’ bid prices have been virtually flat since January as supply and price shocks from Russia’s attack on Ukraine and the pandemic have faded,” said Ken Simonson, the association’s chief economist. “But there are still exceptionally long lead times for electrical equipment and renewed or persistent price increases for steel and concrete.”