Construction Levels and Material Costs on the Rise

摘要

U.S. construction activity continues to improve. Private construction, the larger component of the industry, is up with few exceptions. Led by apartments and condos, housing is one of the fastest growing sectors. The Fed will keep interest rates low for the next two years, a policy that helps single-family housing. Despite the rising construction activity, increases in material costs have generally been modest due to slow demand outside the U.S. In 2012, construction materials increased 1-1.5% in the U.S.; another 1-2% increase is expected in 2013.