Mixed Price Changes for Building Materials in April

2024-05-14T11:17:11-05:00

Inputs to residential construction, goods less food and energy, increased for the sixth consecutive month, according to the most recent producer price index (PPI) report published by the U.S. Bureau of Labor Statistics. The index for inputs to residential construction, goods less food and energy, represents building materials used in residential construction. The non-seasonally adjusted index increased 0.14% in April after increasing a revised 0.50% in March and 0.47% in February. The index is up 2.77% from April 2023, the largest yearly increase since 2.80% in February of 2023. The average yearly change, over all 12 months, was 2.50% in 2020, 14.62% in 2021, 15.18% in 2022, and 1.34% in 2023. Over the first four months of 2024, the average change was 2.32%. The seasonally adjusted PPI for final demand increased 2.18% from last year, the largest yearly increase since April 2023 (2.30%). Over the month, the final demand index rose 0.56%. From the BLS, “Nearly three-quarters of the April advance in final demand prices is attributable to a 0.55% increase in the index for final demand services. Prices for final demand goods moved up 0.44%”. The seasonally adjusted PPI for softwood lumber increased 6.20% in April. This was the largest month-over-month increase since January of 2022 when the index shot up 21.56% over the month. From April of 2023, the index was 4.31% lower. The non-seasonally adjusted PPI for gypsum building materials fell 0.74% in April.  Despite falling over the month, prices for gypsum building materials were 1.00% higher than April of last year. The seasonally adjusted PPI for ready-mix concrete fell for the first time in four months, down 0.27% in April. Prices for ready-mix concrete have continued to increase since 2021, as this was only the fourth price decline since January 2021. Year-over-year, ready-mix concrete prices were 8.04% higher. The non-seasonally adjusted PPI for steel mill products fell for the second straight month, down 2.67% for April after an 8.10% decline in March. Prices for steel mill products are 9.79% lower than last year. The non-seasonally adjusted special commodity grouping PPI for copper rose 3.46% in April. Over the year, the index was up 4.46%. Copper futures pricing, not shown here, was trading near $4.90 per pound as of today, its highest level since early 2022 at $5.00 per pound. Discover more from Eye On Housing Subscribe to get the latest posts to your email.

Mixed Price Changes for Building Materials in April2024-05-14T11:17:11-05:00

Residential Building Material Price Increase to Start 2024

2024-02-16T12:23:16-06:00

By Jesse Wade on February 16, 2024 • The latest Producer Price Index, reported by U.S. Bureau of Labor Statistics, indicated that inputs to residential construction, goods less foods and energy (residential building materials, not seasonally adjusted) increased 1.28% between December 2023 and January 2024. This was the largest monthly change for the index since March of 2022, when it increased by 2.07%. The year-over-year change of the index was 1.91%, the largest yearly increase since February of 2023. The seasonally adjusted Producer Price Index for final demand goods decreased 0.2% in January, a fourth consecutive decrease for the index. The PPI for final demand energy decreased 1.7%, while final demand goods less foods and energy increased 0.3% in January. On a yearly basis, between January 2023 and 2024, the PPI for final demand goods was down 1.7%, with final demand energy down 9.8%, and final demand goods less foods and energy up 1.6%. The seasonally adjusted PPI for softwood lumber continued to fall as it decreased for the 6th consecutive month, down 1.82% in January. Over the past year, softwood lumber prices have been down 8.98%. Earlier this month, the U.S. Department of Commerce signaled plans to increase tariffs on Canadian softwood lumber from 8.05% to 13.86% this summer or early fall. The not seasonally adjusted PPI for gypsum building materials did not change over the month of January, but was 1.92% lower than last year. Ready-mix concrete seasonally adjusted prices increased in January 1.37% after falling 1.27% in December. On a yearly basis, ready-mix concrete was up 6.88% from January 2023. The not seasonally adjusted PPI for steel mill products continued to rise for the second straight month, up 5.4% in January. Over the year, steel mill products are up 4.39%. ‹ Best Quarter for Townhouse Construction Since 2006Tags: construction costs, inflation, lumber prices, ppi, producer price index, producer prices, ready-mix concrete, softwood lumber, steel

Residential Building Material Price Increase to Start 20242024-02-16T12:23:16-06:00

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