No End in Sight as Engineering and Construction Costs Edge Upward for the Eighth Straight Month
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No End in Sight as Engineering and Construction Costs Edge Upward for the Eight Straight Month
forconstructionpros.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from forconstructionpros.com Daily Mail and Mail on Sunday newspapers.
ACBM staff
Engineering and construction costs maintained their upward movement in May, driven at least in part by rising costs to ship materials from key markets to the U.S. The latest IHS Markit PEG Engineering and Construction Cost Index (ECCI), produced jointly by IHS Markit and the Procurement Executives Group (PEG), shows costs rose for the seventh straight month, with survey respondents reporting widespread price increases across all index components.
As a result, the ECCI moved up 6.3 points to a 78.8 reading in May. The materials and equipment sub-index saw its sixth consecutive monthly increase, rising 4.6 points to 83.1. The subcontractor labor index came in at 68.6, up 10.3 index points from April.
Engineering and Construction Costs Climb for Sixth Consecutive Month in April
Costs for engineering and construction materials rose for the sixth consecutive month, pushing the IHS Markit PEG Engineering and Construction Cost Index to 72.4.
April 28, 2021
Costs for engineering and construction materials rose for the sixth consecutive month in April, pushing the headline IHS Markit PEG Engineering and Construction Cost Index (ECCI) downward to 72.4, a 7.0-point decline from the March figure.
Produced by IHS Markit and the Procurement Executives Group (PEG), the ECCI is based upon data independently obtained and compiled by IHS Markit from procurement executives representing leading engineering, procurement and construction firms. It tracks industry-specific trends and variations, identifying market turning points for key projects, and is intended to act as a leading indicator for wage and material inflation specific to this construction and engineering industry.