Aug. 21, 2006: Construction Materials Costs Heat Up Despite Producer Price Index Cooling
WASHINGTON - "Construction materials costs heated up in July, even as other producers eased up on price increases," noted Ken Simonson, chief economist for the Associated General Contractors of America (AGC). Simonson was commenting on the August producer price index (PPI) report from the Bureau of Labor Statistics (BLS).
"In July, the PPI for finished goods slowed to a 0.1 percent increase, seasonally adjusted, down from 0.5 percent in June," Simonson observed. "But the PPI for materials and components for construction accelerated to a 0.7 percent rise from 0.3 percent in June. Since July 2005, the overall PPI has risen 4.2 percent, while the construction materials index climbed twice as fast, rising 8.3 percent.