Construction Cost Rises Slowed in June Survey

A monthly industry survey showed construction costs continued to increase in June. The share of firms reporting higher material and labor prices declined for the second straight month, the survey's compiler said.

The June reading snapped a pattern of accelerating gains that had pushed the diffusion index to multi-year highs earlier in 2024. Respondents cited shorter lead times for several input categories and less aggressive surcharges from suppliers. Wage pressures across craft trades also eased, though skilled positions remained hard to fill in some regional markets, the survey noted.

The data suggests the two-year cost surge in engineering and construction may be cresting. Project owners who locked in fixed-price contracts during the spring stand to benefit from the moderation. The survey is conducted monthly among engineering and construction firms and covers materials, labor and equipment costs.