Producer Price Index shows signs of ‘stability’
The Producer Price Index for final demand was unchanged in November, seasonally adjusted, the U.S. Bureau of Labor Statistics reported Wednesday. Final demand prices decreased 0.4 percent in October and rose 0.4 percent in September.
HBSDealer below tracks ten key categories. Note: unlike previous months, not a single category declined on a month-to-month basis (although three categories were reported as flat).
Here is the breakdown:
The Washington, D.C.-based trade group Associated Builder and Contractors’ analysis of the data found construction input prices decreased 0.3% in November compared to the previous month.
“Construction input prices declined for the second straight month in November,” said ABC’s Chief Economist Anirban Basu. “While much of the recent decline is due to record domestic oil production and the resulting precipitous decline in gas and diesel prices, other commodities like iron and steel and lumber products are currently more affordable than they were at the same time last year.
“Falling, or at the very least stable, input prices should help to control construction cost increases in the coming quarters,” Basu continued. “This is a welcome development for an industry still dealing with extraordinarily elevated financing costs and rising labors costs due to ongoing worker shortages.”
