Construction materials prices increased in January, due to jumps in items used in new housing and nonresidential renovations, according to analysis of federal data from the Associated General Contractors of America (AGC).
“Contractors had to contend with huge leaps in prices for gypsum, wallboard and lumber, as well as significant increases in the cost of insulation and architectural coatings such as paint,” said Ken Simonson, chief economist for the AGC. “Based on pump prices for diesel fuel and price announcements by various manufacturers, it is clear that costs are rising significantly higher in February.”
The producer price index for all construction inputs rose 0.7 percent between December and January and is up 1.3 percent from last year.
The producer price index for gypsum products such as wallboard and plaster, rose 11.8 percent in January and 20.4 percent over the past 12 months, Simonson noted. Lumber and plywood prices climbed 4.2 percent and 15.1 percent, respectively. Insulation prices rose 2.0 percent and 5.4 percent, while the price index for architectural coatings increased 1.1 percent and 0.5 percent.