A closer look at the recently released Bureau of Labor Statistics (BLS) September Produce Price Index (PPI), with analysis provided by the National Association of Home Builders (NAHB), reveals that prices paid for goods used in residential construction, less energy, decreased -0.8% — not seasonally adjusted — in September.
The decrease was largely driven by lower lumber and concrete products prices and was the second monthly decline since the start of the last recession.
The price index of services inputs to residential construction also decreased in September, driven by smaller gross profit margins of building materials retailers.
While the monthly decline in residential construction is welcome, building materials prices remain 13.9% higher year-over-year and are 11.3% higher than they were in January 2021. Prices increased 4.4% over the same period in 2020.
In contrast, the price index of services inputs to residential construction has increased less in 2021 (+9.5%) than it did over the first nine months of 2020 (+11.9%).
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.
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