Building Materials Prices Increase in January Reversing Four-Month Trend
David Logan2023-02-16T18:16:47-06:00By David Logan on February 16, 2023 • After four consecutive declines, the producer price index (PPI) for inputs to residential construction less energy (i.e. building materials) rose 0.9% in January 2023 (not seasonally adjusted) according to the latest PPI report. Price growth of goods inputs to residential construction, including energy, gained 1.4% over the month. Prices have increased 5.1% over the past 12 months. Ready-Mix Concrete The trend of ready-mix concrete (RMC) prices continued its historic pace as the index increased 0.9% in January after surging 13.6% in 2022. RMC prices have increase in all but two months since January 2021. Gypsum Building Materials The PPI for gypsum building materials was unchanged in January, following a 0.2% decline in December 2022. Gypsum products prices are 11.1% higher than they were a year ago but began stabilizing in August 2022. In the five months since, prices have been essentially unchanged. Softwood Lumber The PPI for softwood lumber (seasonally adjusted) fell 7.6%–the sixth straight monthly decline. Over that period, the index has decreased 23.3%. Steel Mill Products Steel mill products prices decreased 2.3% in January after falling 3.3% in December 2022. Although the pace of declines has slowed, prices have dropped 27.8% since May 2022 and are down 30.1% over the past 12 months. Related ‹ Single-Family Built-for-Rent Growth Strong in 2022Tags: construction costs, Gypsum, inflation, lumber, ppi, producer price index, producer prices, ready-mix concrete, softwood lumber, steel