Producer Price Index for Construction Materials and Services Rises 1.1 Percent in August, Outpacing 0.2 Increase in Contractors’ Bid Prices 

Monthly jump in input costs is driven by near-record 34.6 percent leap in diesel fuel price index; contractors report major staffing challenges in association’s latest survey of hiring conditions. The price of materials and services used in nonresidential construction increased 1.1 percent from July to August, driven by an extreme jump in diesel fuel costs, according to an analysis by the Associated General Contractors of America released today. Association officials noted that most other commodity prices were subdued but said their newly released survey showed contractors continue to experience widespread problems finding qualified workers and the costs associated with those shortages. “The steep climb in diesel prices since July is a reminder that construction cost worries have not gone away,” said Ken Simonson, the association’s chief economist. “An even great challenge for most contractors is finding enough qualified workers to complete the many projects available to work on.” READ FULL STORY >>