Monthly prices for construction entry increased by 0.4% in July, while annual prices increased by 2.2%, according to the Producer Index published by the United States Labor Statistics Office. In the non -residential sector, prices are 0.4% higher than the previous month and 2.6% higher than in July 2024.
“The abrupt rate increases earlier this year on aluminum and steel, along with a more recent rate on dirty copper, promoted the producer price index for higher construction contributions during the third consecutive month,” Ken Simonson, chief economist, chief economist of the general contractors associated with America (AGC) in a press release. “Although contractors generally do not matter directly material, it is clear that domestic producers increase prices according to protection rates.”
Anirban Basu, an economist in the Chief of Builders and Associated Contractors (ABC), said in a statement that prices were increasing “too quickly”, adding that “non -residential entry prices have increased to an annualized rate of 5.8% since January and that commercial policy will continue to rise over the prices of materials over the coming months”.
Hot coiled steel experienced the highest monthly increase, at a rate of 5.3%, while prices increased by 2.4% since July 2024. Copper prices and cable prices also increased in July, 4.9% higher than in June. Since last year, prices have increased by 12.2%.
Basu said that increasing costs in other areas is also a matter of concern. “The rapid increase in the wider prices of producers in July is as worrying as the increase in construction costs,” he said. “With the prices of the goods and services of the final demand that have increased at the fastest rhythm since March 2022, the Federal Reserve will have to consider the perspective of resurfaced inflation when deciding whether or not the rates can be reduced at the September meeting.”
He continued: “The construction industry has a desperate need for minor loan costs, and higher rates for longer will continue to weigh on construction expenditure.”
