AGC: PPI figures show limited-time construction costs sale coming to an end

Construction costs, which had been relatively low for much of the past year, are beginning to climb at an increasing rate, signaling the end to the "limited-time" sale for construction, according to a new analysis of the latest producer price index released by the U.S. Bureau of Labor Statistics today [Oct. 20].

The analysis by Ken Simonson, chief economist for the Associated General Contractors of America, found significant upward movements between August and September 2009 in the prices of copper (10 percent increase), aluminum (2 percent increase), and steel (3 percent increase). All three products are essential components for the vast majority of construction projects. The construction economist added that since the prices were collected a month ago, copper, aluminum and diesel fuel have moved to multimonth highs, according to an Oct. 20 AGC of America release.

Read full article