After December’s numbers posted lower results, Ken Simonson, chief economist at the Associated General Contractors of America, warned that lower costs could be short-lived.
“Some prices have already turned higher in January,” Simonson said last month. “Contractors are right to rank materials costs as a major concern for 2023.” The latest report seemed to lend credence to that warning.
An elevated producer price index is another indicator the Federal Reserve will maintain higher interest rates longer, said Basu.
