The US Bureau of Labor Statistics added more bad news this week for contractors and developers trying to get buildings out of the ground.
Construction material costs increased 10.4 percent during the past year, the agency reported on Tuesday. The bureau’s producer price index measures materials used in construction, including diesel fuel. Meanwhile, highway construction materials increased 18.9 percent during the past 12 months.

Ken Simonson, economist for the Associated General Contractors of America, said in a statement “surging prices for diesel fuel, asphalt, steel and other materials are clobbering construction budgets.” He says asphalt prices during the first two weeks in July have increased by 40 percent. Rebar has increased $200 per ton. MORE »