Construction costs increased in February in North America, according to information supplied by IHS Markit and the Procurement Executives Group (PEG).
The current headline IHS Markit PEG Engineering and Construction Cost Index registered 55.3 in February, a slight rise from January’s reading of 54.4.
Index readings well above 50 for both materials and labour indicate price increases continue to be widespread.
Materials and equipment prices rose in February, with the sub-index rising from 53.9 in January to 54.9, with price increases recorded in eight of the 12 subcomponents.
“While steel costs are coming down right now, price hikes from the summer and fall are now filtering down to turbines and pumps,” said Thomas McCartin, senior economist, pricing and purchasing, IHS Markit.
“Steel prices are an important input cost for these products. Higher input costs, coupled with increasing demand from the energy industry, are putting upward pressure on these materials.”
Current subcontractor labour costs registered increases once again, with the index moving up from 55.7 in January to 56.3 in February. Labour costs increased in most regions of the US. In Canada, both the Eastern and Western parts of the country registered rising labour costs.