US Building Material Prices Rise 3.4% Year-Over-Year in February
Building Material Price Growth Remains Entrenched Above 3%
A closer look at the Bureau of Labor Statistics (BLS) Producer Price Index for February, with analysis by the National Association of Home Builders (NAHB), shows that prices for inputs to new residential construction rose 0.7% in February, following a slowdown in January.
Year-over-year, the inputs to residential construction price index rose 3.4%. The goods component increased 3.0%, while services rose 4.2%.
Input goods, which account for about 60% of the index, rose 1.1% month-over-month. Particleboard and fiberboard down 17.4% year-over-year and softwood veneer and plywood declining 4.0%. Metal product prices continued to lead gains, with metal molding and trim up 61.7% and metal windows up 20.2%. Across all metals and metal products, prices increased 16.6% from a year earlier.
Service inputs to residential construction rose 0.1% in February and were up 4.2% year-over-year. Trade services—the largest component—rose 5.8% from a year earlier, while transportation and warehousing services increased 3.0% and other services rose 1.3%.
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