Impacts from a rise in construction material prices are still being felt despite some recent signs of prices stabilizing, according to new analyses by the Associated General Contractors of America and the Associated Builders and Contractors.
According to an analysis by AGC, construction input prices were up 1.1% in June from May, and up 16.8% from June 2021. “Some materials prices have fallen recently but others appear headed for further increases,” said Ken Simonson, AGC chief economist, in a press statement. “Since these prices were collected, producers of gypsum, concrete, and other products have announced or implemented new increases. In addition, the supply chain remains fragile and persistent difficulties filling job openings mean construction costs are likely to remain elevated despite declines in some prices.”