Construction materials have seen their overall composite prices fall this year (see line for Industrials, which includes building materials, in the figure to the left). Some key construction materials that have seen price declines includes steel (down 1.9% in October) and plywood (down 1.8% in October) However, because of price increases in some key building materials, materials prices are still outpacing the increases in contractors' bids. According to Ken Simonson, chief economist for AGC, the price gains in diesel fuel (up 2.3% in October) and copper (up 2.8% in October) have continued to put pressure on contractor bids. For more info, see this article and check out the AGC list for Producer Price Indexes here.
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