| The index for finished goods slowed to a 0.1 percent increase in July down from a 0.5 percent in June. July is the last month for which figures are available.
The index for materials rose to 0.7 percent from 0.3 percent in June. The overall index rose 4.2 percent since July of 2005, while the construction materials index climbed twice as fast, rising 8.3 percent.
“Public agencies and private owners alike should get realistic about budgeting for higher construction costs and not apply a general index, such as the finished goods PPI or the consumer price index, for construction,” said Ken Simonson, chief economist for the Associated General Contractors of America. “Construction depends on fixed quantities of materials, delivered to a specific physical location. Those facts make the industry vulnerable to supply-demand imbalances and high freight and fuel costs.”. |
