Prices for materials used in construction increased 19.7% year-over-year in April, according to an analysis by the Associated General Contractors of America.
It is the largest increase in the 35-year history of the price-tracking series. The producer price index for lumber and plywood soared 85.7%.
“Today’s producer price index report—bad though it is—actually understates the severity of the problems contractors are experiencing,” stated Ken Simonson, AGC chief economist. “Many items have posted even steeper price increases since the data for this report were collected in mid-April, while lead times for producing goods and delivery times to distributors and worksites have grown ever longer and less certain.”
An analysis that included services as well as goods purchased by contractors showed an increase of 19.1%.
The full AGC report can be found here.
