The producer price index (PPI) for inputs to residential construction rose marginally in February after four consecutive monthly decreases. According to an analysis by the NAHB, price growth of goods inputs to residential construction increased 0.4% in February. Prices have increased 2.9% over the past 12 months.
The PPI for softwood lumber (seasonally adjusted) fell 0.8% in February–the seventh consecutive monthly decline. Since peaking in March 2022, the index has fallen by nearly half (-47.1%) but is still nearly 20% above the January 2020 level.
The PPI for gypsum building materials climbed 0.5% in February after edging down very slightly the month prior. Gypsum products prices are 12.5% higher than they were a year ago but began stabilizing in August 2022. Prices have been stable—up just 0.7%—in the six months since.
The trend of ready-mix concrete (RMC) prices continued its historic pace as the index increased 0.8% in February after gaining 0.7% in January (revised). RMC prices have increased in all but two months since January 2021.
The monthly increase in the national data was broad-based geographically but was primarily driven by a 4.2% increase in the Northeast. Prices increased 0.8% in the West, 0.5% in the South, and were unchanged in the Midwest.Read More