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latest producer price index shows late summer increase, says report

9/19/2019

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The cost of building a nonresidential building increased by 5.6 percent in August over the same time period a year ago, says a new survey just released by the Bureau of Labor Statistics.

The producer price index, measuring what a wide range of contractors charge for their work, charted a 4.2 percent increase in the healthcare building segment, and a 4.8 percent jump in new office building construction.

Larger increases were seen in the warehouse segment, with a 5.6 percent jump, and in industrial building construction, with a 6.6 percent increase.

The largest jump was recorded in school construction, with the index showing a 6.9 percent increase over August of 2018.

The index also revealed a 2.4 percent increase for roofing contractor prices and a 5.6 percent jump for plumbing contractors.

One of the largest increases was seen with concrete contractors, experiencing a 7.2 percent increase over last summer.

A press release from the Bureau of Labor Statistics, looking at the overall arc of product prices, noted that pries for fuels, chemicals, and allied products also were on the upside.

“Conversely,” said the BLS statement, “margins for machinery and vehicle wholesaling declined 4.2 percent.”

By Garry Boulard

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