Construction costs increase continued to slow in December, according to IHS Markit and the Procurement Executives Group.
The current headline IHS Markit PEG Engineering and Construction Cost Index registered 53.0 this month, the lowest index figure for 2018. Although prices are still rising (the index remains above 50 for both materials and labor) increases have been less widespread in the last two months.
Materials and equipment prices rose in December, however the index figure dropped once again from 58.7 in November to 52.6 in December. The index figure for materials and equipment has not been this low since July 2017. Price increases were recorded in 6 of the 12 subcomponents in December, heat exchangers, turbines and ready-mix concrete showed flat pricing, while fabricated structural steel, carbon steel pipe and alloy steel pipe experienced price declines. Steel and pipe prices began to drop after a 15-month stretch of rising prices.
