Construction Materials Costs Rises 10% Over 12 Months

The price of materials and services used in nonresidential construction continued rising at a double-digit rate in November from a year earlier, propelled by outsized increases in the cost of a variety of building materials, according to an analysis of government data by the Associated General Contractors of America. Association officials noted that contractors are having to pay more both for materials and for the subcontractor services they need to finish most projects.

The producer price index for inputs to nonresidential construction—the prices charged by goods producers and service providers such as distributors and transportation firms—rose 10.1 percent since November 2021 despite decreasing 0.4 percent from October to November. The year-over-year rise outpaced the 7.4 percent increase in the overall producer price index for finished goods, the economist noted.