The amount contractors pay for a range of key construction materials decreased for the second consecutive month in June and inched up by just 0.5 percent from a year earlier, according to an analysis of producer price index figures released by the Associated General Contractors of America. Meanwhile, the amount contractors charge to construct projects was virtually unchanged for the month and rose only between 3.2 and 4.4 percent from a year ago. “Contractors are finally seeing sustained relief from the outsized cost increases that buffeted them last year,” said Ken Simonson, the association's chief economist. “The half-percent rise in … Read more

Construction spending in May reached the highest level since December 2009 as widespread gains in private nonresidential construction, single-family and multifamily homebuilding more than offset a continuing downturn in public construction, according to an analysis of new federal data released by the Associated General Contractors of America. Association officials said they expect the disparity between private and public construction is likely to persist, although enactment of a federal highway and transit bill will cushion the decline in public spending. “It is encouraging to see such a broad-based pickup in private construction,” said Ken Simonson, the association's chief economist. Simonson noted … Read more