Squeeze on Contractors: Material Prices Up, Finished Prices Flat

From AGC of America Economist Ken Simonson: The Producer Price Index (PPI) for inputs to construction increased 3.8% over 12 months. The rise adds to an ongoing squeeze on contractors as PPIs for finished nonresidential buildings and subcontractors’ work which include overhead and profit have fallen or have risen less than materials costs. Click PPI tables for price trends for construction materials structure types and subcontractors.