Building material prices see slight increase in July

The prices of building materials rose slightly by 0.4% in July on a non-seasonally adjusted basis, according to the latest Producer Price Index report.

Softwood lumber prices increased 2.3% and have jumped 35.7% since January 2002.

According to the National Association of Home Builders, 80% of that increase occurred since January 2021.

The PPI for goods inputs to residential construction, including energy, declined 1.2% as the cost of #2 diesel and unleaded gasoline have fallen 16.6% and 16.7%.

Services inputs to residential construction are down 1.4% in July, marking the third straight month of declines. The building materials retail index also saw a 3.8% decrease.

The NAHB said the services PPI is 3% higher than it was a year ago and nearly 35% greater than at its pre-pandemic level.

The PPI for ready-mix concrete was up 2.5% in July and has increased in 17 of the last 18 months. The latest increase is the largest since prices climbed 3.7% in March 2006. The index has climbed 6.8%, year-to-date, the largest year-to-date July increase in the series’ 34-year history.

The PPI for softwood lumber increased 2.3% in July as prices have fallen 28.2% year-to-date.

Gypsum products were steady in July after increasing 0.1% in June and 7.1% in May. and has soared 22.6% over the past year. 

Steel mill product prices decreased 3.7% in June following a 1.7% decline in June. over the two prior months as the PPI for exterior and interior architectural coatings increased 1.0% and 0.5%.

Truck transportation of freight decreased 0.3% in July, the second consecutive decline after two years of monthly increases, the NAHB said. Over the past year, the indices for local and long-distance motor carrying prices are up 18.9% and 22.6%.

The latest price producer index is available here.