Input Costs to New US Residential Construction Increase in May

A closer look at the US Bureau of Labor Statistics (BLS) Producer Price Index (PPI) for May, with additional analysis by the National Association of Home Builders (NAHB), shows that prices for inputs to new residential construction—excluding capital investment, labor, and imports—rose 0.2% in May, following a revised 0.2% decline in April.

Year-over-year, the inputs to new residential construction index increased 1.9%. This index includes two components: The goods component rose 1.6%, while the services component rose 2.3%. For comparison, the overall final demand index—which reflects prices for all goods and services across the economy—increased 2.6% over the same period. Within that total, final demand for goods rose 1.3%, and final demand for services rose 3.2%.