CONSTRUCTION MATERIAL COST INCREASES PLAGUE CONTRACTORS IN MAY AS FINISHED BUILDING PRICES REMAIN FLAT, THREATENING FIRMS’ VIABILITY

WASHINGTON, D.C. – June 14, 2011 – (RealEstateRama) — Contractors suffered from a new round of price increases for key materials in May but were largely unable to pass their costs along to customers, according to an analysis of producer price index figures released today by the Associated General Contractors of America. Association officials said the ongoing cost squeeze—a result of sluggish demand for construction—threatens to drive more construction employees and firms out of work unless public officials lower barriers to public and private investment