Construction Ticks Up, But So Do Costs

NEW YORK CITY—The construction pipeline is filling up, with McGraw-Hill Construction‘s Dodge Momentum Index for nonresidential projects in the planning stages showing its third consecutive monthly increase. And in the latest of a string of positive reports from the Associated General Contractors of America, the Arlington, VA-based trade association said its analysis of the latest Census Bureau figures showed overall spending was up for the third month in a row.

However, one reason for the increase in spending may be a rise in costs. Consulting firm Rider Levett Bucknall says US construction costs rose 1.15% in the first quarter of 2014, the largest three-month increase since 2008.