AGC chief economist predicts continued increases in construction materials cost
Although the Bureau of Labor Statistics’ December Producer Price Index reported construction materials cost were down in November, the Associated General Contractors of America’s Chief Economist Ken Simonson says that trend is not likely to last.
According to Simonson, costs are likely to be higher for construction than for the economy as a whole over the next 12 months.
In November, prices for diesel fuel, asphalt, plastic construction products, lumber and plywood, gypsum products and steel and copper products declined, mostly because of the slowdown in home construction. But prices continued to increase for most concrete products, brick, and aluminum mill shapes. Petroleum, cement and metal prices remain at record high levels.
Reference: Rock Products
