Construction Costs Increase at Slower Pace in May But Up for Seventh Straight Month
Construction costs rose for the seventh consecutive month in May, according to IHS Markit (Nasdaq: INFO) and the Procurement Executives Group (PEG). The headline IHS Markit PEG Engineering and Construction Cost Index registered 54.0 in May, down from 57.0 in April. Both the materials/equipment and labor categories showed increases, though compared to April, the cost increases were not as broad.
The materials/equipment price index came in at 55.2, almost five points lower than in April, which was one of the highest figures recorded in the survey’s history. Seven of the 12 categories tracked in the materials sub-index showed rising prices; five categories registered flat pricing; and no category in the survey recorded falling prices. While the copper-based wire and cable price index hit the neutral point in May, steel prices remained elevated despite some give back.