PROVIDENCE – The cost of new commercial buildings rose in October as contractors tried to recoup fast-rising material and labor costs, according to the Associated General Contractors of America.
Trade tensions and labor shortages are contributing to higher construction prices, the association’s analysis found.
Contractors and subcontractors raised prices on bids in November to make up for past cost increases, but the cost of goods and services that they buy is rising even faster, according to Ken Simonson, the association’s chief economist.
The producer price index for inputs for construction industries climbed 0.6 percent in October. Over the past year, the index has risen 6.6 percent.
Mary MacDonald is a staff writer for the PBN. Contact her at email@example.com.