Image courtesy 401(K) 2012 through a Creative Commons license.
Image courtesy 401(K) 2012 through a Creative Commons license.
Image courtesy 401(K) 2012 through a Creative Commons license.

Contractors appear to be closing the gap between rising input costs and bid prices, based on the latest Producer Price indexes (PPIs). The PPI for new nonresidential building construction—a measure of the price that contractors say they would charge to build a fixed set of buildings—increased 1.4% in April from March and 5.6% year-over-year (y/y) from April 2018. Increases ranged from 4.9% y/y for new office construction to 5.0% for health care buildings, 5.2% for warehouses, 6.2% for schools and 6.9% for industrial buildings. Increases in PPIs for subcontractors' new, repair, and maintenance work on nonresidential buildings ranged from 2.3% y/y for roofing contractors to 7.9% for concrete contractors—the largest y/y jump for concrete contractors in the 12-year history of the index.

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