Prices for goods and services used in construction costs were unchanged overall from June to July, but months of steep increases over the past year have squeezed the profits of contractors, whose bid prices have not matched the cost shocks, according to an analysis by the Associated General Contractors of America of new Labor Department data. Association officials warn that the impact of recent and threatened tariffs are likely to put contractors in further financial peril.
鈥淎lthough price changes for construction materials in July were mixed, contractors are likely to be hit with additional cost increases as new tariffs take hold and stocks of items purchased before the tariffs are used up,鈥 said the association鈥檚 chief economist, Ken Simonson. 鈥淒espite the pause in cost increases in July, prices for goods and services used in construction rose over the past year at more than double the rate that contractors have raised their bid prices to put up new buildings.鈥
Read full news release here.