Prices for construction materials posted an overall decline of 0.1 percent in December after remaining unchanged over the two previous months. Raw materials prices fell for the second consecutive month, as did cement prices; diesel fuel prices increased 7.9 percent, erasing declines in October and November, though prices remain 0.9 percent below December 2012 levels.

The December Producer Price Index (PPI) for construction components and materials fell 0.1 percent on a seasonally adjusted basis after no change over the previous two months. The index was up 1.5 percent on a not seasonally adjusted (NSA) year-over-year basis and was 7.8 percent higher than in December 2010, according to a recent Bureau of Labor Statistics report.

Prices for raw construction materials or products used in construction were down 0.3 percent in December for the second month in a row. The index was 2.4 percent higher than in December 2012 and was 6.7 percent higher than in December 2010.

Indexes for residential and nonresidential construction inputs both increased 0.1 percent in December after declining in November. The residential input index was up 1.6 percent from December 2012 and was up 8.7 percent from December 2010; the nonresidential input index increased 1.0 percent from December 2012 and was up 7.7 percent from December 2010. Both metrics are not seasonally adjusted and exclude capital equipment.

Cement prices slipped 0.1 percent (NSA) in December following a 0.4 percent decline in November. Prices were 5.0 percent higher than in December 2012 and were 6.1 percent higher than in December 2010. Precast concrete products prices increased 0.3 percent in December after rising 0.1 percent in November. Prices were 1.7 percent higher than in December 2012 and were 7.0 percent higher than in December 2010.

Industrial natural gas prices fell 0.6 percent (SA) in December, ending three consecutive months of increases. Prices were 1.4 percent (NSA) higher than in December 2012, but 9.8 percent lower than in December 2010. Diesel fuel prices surged 7.9 percent (SA) in December following a plunge of 5.6 percent in November and a fall of 2.2 percent in October. Prices were 0.9 percent (NSA) lower than in December 2012, but were 21.3 percent higher than in December 2010.

On a seasonally adjusted basis, the PPI for softwood lumber dropped 3.3 percent in December after surging 2.8 percent in November and 2.9 percent in October. Prices were 6.6 percent higher than in December 2012 and were 24.3 percent higher than in December 2010.