By Ken Simonson, AGC of America
Construction-input PPIs escalate, outpace contractors’ prices;
more price hikes announced
The producer price index (PPI) for final demand in February, not seasonally adjusted, increased 0.3% from January and 2.8% year-over-year (y/y) from February 2017, the Bureau of Labor Statistics (BLS) reported on Wednesday. AGC posted tables and an explanation focusing on construction prices and costs. Final demand includes goods, services and five types of nonresidential buildings that BLS says make up 31% of total construction. The PPI for final demand construction, not seasonally adjusted, climbed 0.8% for the month and 3.5% y/y, the largest y/y increase since July 2012. Read more….AGC DataDigest March 16, 2018
Construction materials costs have already risen since these prices were collected in mid-February, with more increases likely soon. On March 8, after President Trump announced tariffs of 25% on steel and 10% on aluminum, the White House issued a presidential proclamation stating that the tariffs would apply “to goods entered, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on March 23, 2018.
read more…AGC DataDigest March 16, 2018
Construction employment, not seasonally adjusted, rose from January 2017 to January 2018 in 248 (69%) of the 358 metro areas (including divisions of larger metros) for which BLS provides construction employment data, fell in 68 (19%) and was unchanged in 42, according to an AGC analysis released today. (BLS combines mining and logging with construction in most metros to avoid disclosing data about industries with few employers.) Read More……AGC DataDigest March 16, 2018