A government index that measures contractors’ bid prices fell by 1.4 percent, according to the Associated General Contractors of America. Association officials said contractors are finally seeing some relief from recent supply chain problems and price escalations, but the competitive market means key materials are still hard to find.
The impacts from the pandemic and Russia’s attack on Ukraine have faded, however, long lead times remain for electrical equipment and construction machinery. Cement, lumber, plywood, and asphalt coatings are some of the materials showing persistent price increases.
The producer price index for new nonresidential construction—a measure of what contractors report they would charge to put up a specific set of buildings—fell 1.4 percent in July. That decrease followed no change the month prior and a slight decline in May.
Diesel prices decline in July
Prices for most major construction inputs were stable or declined in July. Some of the greatest declines included diesel fuel, falling 8.4 percent for the month, steel mill products dropping 7.6 percent, and fabricated structural metal, down 6.4 percent.
Source: AGC
