Building Materials Costs Climb Higher in April—Up Both Month-Over-Month and Year-Over-Year
Building Materials Prices Move Higher, Up 19% Year-over-Year
A closer look at the Bureau of Labor Statistics’ April Producer Price Index (PPI) report, which was released on Thursday (5-12-22), with further analysis provided by the National Association of Home Builders (NAHB), reveals that the prices of goods used in residential construction (ex-energy and not seasonally adjusted) increased 0.5% in April. This follows an upwardly revised increase of 1.9% in March and 2.4% in February.
For the first four months of 2022, building materials prices increased 19.2% and are 35.6% higher since the start of the COVID-19 pandemic.
The price index of services inputs to residential construction increased 0.9% in April. However, the index was revised higher for March, causing the monthly increase to jump from 3.2% to 6.8% over the month. As a result, the price index of services used in home building (including trade services, transportation, and warehousing) has climbed 13.3% since the start of the year. Year-over-year, the index has increased 18.1% and is up 45.6% since the start of the pandemic.
The April PPI for softwood lumber declined -15.6%, seasonally adjusted, following a downwardly revised 53.4% increase in March and a 2.5% gain in February. For the first four months of 2022, the index is down -8.9%. Since reaching it most recent low point in September 2021, softwood lumber prices have increased 60.4%.
In April, the PPI for gypsum products was unchanged. Year-over-year, gypsum product prices are 17.8% higher and have increased 23.5% since January 2021.
Steel mill products experienced their first monthly increase since December 2021, climbing 2.4% higher in April. The first four months of 2022 have been good for the cost of derivative steel products, after increasing 128.0% in all of 2021.
After a modest incline in March of -0.2%, the PPI for ready-mix concrete (RMC) restarted its upward trek, and prices increased 1.3% in April. The RMC index has climbed 8.9% year-over-year and is 12.6% higher than the January 2021 reading
FEA compiles the Wood Markets News from various 3rd party sources to provide readers with the latest news impacting forest product markets. Opinions or views expressed in these articles do not necessarily represent those of FEA.