Cost of construction materials for investment properties outpaced the consumer price and the producer price indexes in both 2004 and 2005. However, even with these incrases, contractors report a healthy level of activity. The improving economy makes projects worth doing despite the higher material costs for developers. In a recent report on the costs outlook for construction, Associated General Contractors predicted that cement and concrete costs could rise an additional 10 to 15 percent in 2006, as the US increasingly imports these materials.