Construction materials price index flat in September

Reed Construction Data
October 31, 2011

The Bureau of Labor Statistics reported that the Producer Price Index for construction materials held steady in September after dropping 0.6 percent in August, according to an Oct. 28 report from Reed Construction Data. Meanwhile, the measure was up 8.1percent from a year earlier, although only 3.3 percent higher than September 2008.

Energy prices continue to be a major driver of construction costs, according to Reed's analysis. The pricing environment will remain weak for materials suppliers for the next six to twelve months, and little change in the price index is expected, with a few monthly price declines possible. Contractors should expect a two-or-more-quarter window with their materials cost rising the same or less than overall inflation, according to the article.