The Turner Building Cost Index that measures non-residential building construction costs in the US decreased by -2% in the third quarter of this year compared to a -3.3% decline in the second quarter and a -5.7% decrease in the first.

While construction costs have decreased by -11% since the beginning of 2009, the indications are that the decline is now slowing.

Karl Almstead, Turner Construction's vice president who compiles the index said, "With construction starts down in most sectors, market competition continues to drive declines in construction costs. However, global and domestic economies appear to be stabilising.

"Countering the cost decline, material and commodity prices have generally remained level, with the exception of non-ferrous metals, for which prices have risen as a result of global demand," said Mr Almstead.

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