Prices of Goods Used in Residential Construction Increase 1.6% in February 2022

According to the latest Bureau of Labor Statistics (BLS) Producer Price Index (PPI) report, with analysis provided by the National Association of Home Builders (NAHB), the price of goods used in residential construction, less energy and not seasonally adjusted, increased 1.6% in February 2022.

Year-over-year, building materials prices have increased 20.4% and have increased 31.3% since January 2020. Over the past five months, the index has climbed 10.6%.

The price index of services inputs to residential construction increased 3.8% in February following a 5.1% increase in January 2021 (revised). The index declined 13.5% between June and November last year but has increased 10.3% in the three months since. The index is 14.1% higher than it was a year prior and 32.6% higher than the January 2020 reading.

The “ups and downs: of the February PPI:

• Steel mill products prices declined -9.9% in February, the second consecutive decrease after increases each of the prior 15 months.
• The PPI for ready-mix concrete (RMC) gained 0.8% in February after increasing 1.1% in January.
• The PPI for gypsum products declined -1.9% in February, snapping an 11-month streak of increases during which the index climbed 31.4%.
• The PPI for softwood lumber (seasonally adjusted) increased 2.6% in February following a combined 28.9% increase over the two months prior. Since reaching its most recent trough in September 2021, prices have increased 79.5%.
• After a 12-month period during which the prices of exterior and interior paint increased 30.3% and 21.2%, respectively, paint prices held relatively steady in February.