Builders beware — construction costs rising

The era of cheap construction materials may be slipping away, according to analysis by the Associated General Contractors of America Inc.

The price index for construction inputs — a weighted average of all materials used in construction, plus items consumed by contractors, such as diesel fuel and tires on equipment — rose 0.4 percent from December to January and 4.5 percent during the last year, said Ken Simonson, chief economist for AGC.

The 4.5 percent increase was relatively small, Simonson said, but the cost of construction materials could accelerate in the months to come...