The price of materials and services used in nonresidential construction inched down 0.1 percent from February to March, as plunging fuel prices outweighed increases in the cost of other goods, according to an analysis by the Associated General Contractors of America of government data released today. Association officials said new rules associated with federal funding for a range of infrastructure projects will make it hard for firms to procure materials and may drive bidders away from the projects.
“With materials costs fluctuating so much month-to-month, contractors remain wary about committing to projects with unpredictable costs and lead times,” said Ken Simonson, the association’s chief economist. “While inflation in the broader economy is settling back to earth, construction costs keep hitting updrafts.”
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