Dive summary:

• Gypsum, insulation, lumber and plywood prices rose enough last month to offset decreased prices for other materials such as asphalt and steel-mill products, Associated General Contractors of America reported after analyzing federal data.
• The organization's chief economist, Ken Simonson, also said that no relief seems to be in sight, given where diesel prices are now and word from manufacturers who are planning to raise prices.
• Among the high-flying prices, products made with gypsum, like wallboard and plaster, were 11.8% higher in just January and stand 20.4% above January 2012, while lumber for homes and commercial renovations went up 4.2% last month and 15.1% over 12 months.

From the article:

Association officials said that contractors were paying more for materials even as the pending federal spending "sequestration" threatens to cancel an estimated $4 billion worth of construction activity this year. ...