Building Materials Costs Climb Higher in April—Up Both Month-Over-Month and 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


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Original Source:
Building Materials Prices Move Higher, Up 19% Year-over-Year