The price of diesel fuel dropped 13.4 percent in August from July, according to an analysis by the Associated General Contractors of America.
That drop masked increases in other construction outputs, however, leaving the price of all materials and services used in nonresidential construction down by 1.1 percent from July to August, according to the group. Among services, the price index for equipment rental and leasing climbed 3.7 percent.
“Today’s price report highlights the mixed conditions contractors are experiencing, with many costs still rising sharply while others take a breather,” said Ken Simonson, AGC chief economist, in a prepared statement. “Meanwhile, an industry survey we recently released found that supply-chain issues and labor availability are delaying many construction projects.”
The survey, which the association conducted with Autodesk and released on August 31, asked construction firms about the impact of shortages and delivery delays on project completion times, among other topics. Eighty-two percent of firms reported projects had been delayed due to longer lead times or shortages of materials, and 66 percent reported delays due to shortages of employees or subcontractors.
The producer price index for inputs to nonresidential construction—the prices charged by goods producers and service providers such as distributors and transportation firms—decreased 1.1 percent from July to August but nevertheless rose 13.0 percent compared to August 2021. The index for energy used in nonresidential construction plunged 13.1 percent for the month.
Prices of several widely used goods rose in August, partially offsetting declines for fuel, lumber, and some metal products prices. The price index for gypsum building materials such as wallboard jumped 3.3 percent for the month. Indexes rose for construction machinery and equipment (2.6 percent), flat glass (2.4 percent), copper and brass mill shapes (2.0 percent), ready-mixed concrete (1.6 percent), and asphalt paving mixtures and blocks (1.0 percent).
These increases were more than offset by one-month decreases in August in the index for diesel fuel (-13.4 percent), steel mill products (-5.7 percent), and lumber and plywood (-2.9 percent). The fuel price drop contributed to a 1.9 percent fall in the index for truck transportation of freight.
Source: Associated General Contractors
