The cost of construction materials decreased 0.2 percent in December but were 5.3 percent higher than a year earlier, according to an analysis of producer price index figures by the Associated General Contractors of America (AGC).
But stagnant pricing for construction jobs means that the decrease in costs doesn’t show up in contractor earnings, AGC officials said.
“Any relief contractors might get from the recent declines in materials prices is being offset by their inability to increase prices for new construction projects,” said Ken Simonson, the association’s chief economist. “With overall demand relatively weak and public sector investments in construction declining rapidly, construction remains a buyer’s market.”
For more information, go to this link: https://www.agc.org/news/2012/01/18/construction-materials-prices-drop-again-december-amount-contractors-charge-stagnant – sthash.VsFMU6Pd.dpuf
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