The producer price index for materials and services used in nonresidential construction rose 0.2 percent in September and 3.2 percent from September 2024, according to an analysis by the Associated General Contractors of America of government data released today. Association officials said the latest figures underscore how cost pressures are resurfacing for contractors even as overall demand in several private-sector construction segments remains muted.
“Persistent input-price pressure, even when the increases are modest, creates a stop and go rhythm in procurement and production instead of a steady flow contractors and suppliers need.” said Macrina Wilkins, the association’s senior research analyst. She noted that “these month-to-month swings make it harder for firms to plan confidently and protect already-thin margins.”
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