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Tuesday, October 2, 2012

US Construction Materials Costs Drop


April and May 2012 saw a price drop in construction materials and ancillary supplies, like diesel fuel, according to Associated General Contractors of America.
Rising 0.1 percent and 0.3 respectively during each month caused the producer price index to increase to a maximum of 2.5 percent over the past 12 months. The latter number represents the smallest year over year increase since 2009.

While Ken Simonson, the association’s chief economist, noted the recent decrease allowed contractors to recover from earlier 2012’s price spikes, he also acknowledged, “workloads remain uneven by segment and geographical region.”
In May contractor’s fees on new projects remained flat having increased between 3.1 and 4.3 percent for the year. Again, negative information contrasted with positive reports of gypsum and lumber price increases. The latter indicates growth in new residential and commercial remodeling markets.

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