WASHINGTON (AURN News) — The K-shaped economy continues to show signs of weakness as new data suggests the cracks are starting to show in America’s construction industry.
According to PEG and S&P Global Market Intelligence, construction and engineering costs increased in June, creating new challenges for companies trying to plan and complete major projects.
Their Engineering and Construction Cost Indicator found that rising costs are beginning to weigh on momentum across the industry.
“Growing uncertainty stemming from the ongoing Middle East conflict has prompted suppliers to shorten bid validities on equipment and bulk material packages, complicating project planning,” their latest report said.
“Bidders have held prices firm through June and July, though respondents broadly expect upward pressure to persist driven by inflation and elevated energy costs. On the supply side, lead times for pipe, steel, and electrical items are extending, signaling procurement challenges,” it continued.
The findings are another sign that inflation remains a stubborn thorn in the side of the nation’s economic strength.
As material costs rise and supply chains face new pressure, construction firms are increasingly being forced to navigate longer wait times, higher expenses and growing uncertainty.
Click play to listen to the AURN News report from Jamie Jackson:
