PPIs diverge for construction costs; heavy materials suppliers report varying demand trends

Divergent trends are emerging for construction costs, as indicated by producer price indexes (PPIs) for June that the Bureau of Labor Statistics (BLS) posted on Friday. AGC posted tables showing PPIs relevant to construction. The PPI for new nonresidential building construction—a measure of the price that contractors say they would charge to build a fixed set of buildings—declined 0.3% for the month, following a 0.1% dip in May. The year-over-year (y/y) increase of 2.2% compared with a rise of 5.5% a year earlier and was the smallest y/y increase since June 2017.