Prices of residential construction building materials were 0.2 percent higher in September after rising 0.3 percent in August, and nonresidential construction prices were unchanged in September after increasing 0.5 percent in August. The Producer Price Index (PPI) for all construction materials increased 0.4 percent due to price increases for lumber, cement, gypsum and other materials.

The Producer Price Index for construction materials and components rose 0.4 percent on a seasonally adjusted basis in September, up from a 0.2 percent increase in August, according to the latest Bureau of Labor Statistics report. The index was up 2.0 percent on a year-over-year basis, not seasonally adjusted, and was 8.5 percent higher than in September 2010.

The more volatile prices for raw construction materials shot up 1.6 percent after falling 0.2 percent in August. The index was up 3.3 percent from September 2012 and was up 7.8 percent from September 2010, according to a Reed Construction Data report.

Prices of building materials primarily used in residential construction were 0.2 percent higher in September after rising 0.3 percent in August. Higher prices for insulation, gypsum, lumber – which is more heavily used in residential construction than in nonresidential construction – cement and copper prices added to the increase. Conversely, oriented strand board prices continued their recent decline, offsetting some of the other increases.

Prices for inputs used in nonresidential construction were unchanged in September after increasing 0.5 percent in August. There were no areas that jumped out as an explanation of the flattening. In general some energy and metals prices were down. Lumber, cement, and copper prices were up.

An index that measures inputs used in residential construction (excluding capital equipment) rose somewhat faster, up 0.2 percent (NSA) in September following an increase of 0.3 percent in August. The index was 1.2 percent higher than in September 2012 and was 10.8 percent higher than in September 2010.