05-23-23 | News

NAHB Reports an Increase in the PPI for Construction Materials

The PPI of Residential Construction Inputs Raised 0.4%
by Staff

After falling consecutively for four months, February and January saw an increase in the PPI for inputs to residential construction building materials.

The National Association of Home Builders (NAHB) recently reported that the producer price index (PPI) for residential construction less energy (meaning building materials) finally increased during February and January of this year. Prices have increased 2.9% in the past year.

The NAHB credits ready-mix concrete (RMC) as a main contributor to the increase, as the price of RMC increased by 0.8% in February and 0.7% in January. Most geographic regions in the United States saw smaller increases, but the Northeast saw an increase of 4.2%, driving up the average price.

Some of the reasons the NAHB states that Concrete prices are continually increasing is the closure of a prominent limestone quarry in Mexico and because of the unavailability of cement mix, which doesn't seem to be changing any time soon.

Here are some of the individual construction materials PPI's:
- Ready Mix Concrete: Up 0.8%
- Softwood Lumber: Up 0.5%
- Gypsum Building Materials: Up 0.5%
- Steel Mill Products: Up 2.6%

More recently, the U.S. Bureau of Labor Statistics reported that the index for unprocessed nonfood materials less energy increased by 1.8% during the month of April.


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