US Building Material Prices Rise 5.0% Year-Over-Year in July

A closer look at the Bureau of Labor Statistics (BLS) Producer Price Index for July, with analysis by the National Association of Home Builders (NAHB), shows that residential building material prices, excluding energy, rose 0.4% in July and were up 5.0% from a year earlier.

The price index for inputs to new residential construction fell 0.1% in July but was up 6.5% year-over-year. The goods component, including energy, rose 0.1% month-over-month and 6.7% from a year earlier, while services fell 0.3% in July but were up 6.2% year-over-year.

Among building materials, softwood lumber prices rose 7.4% in July and were up 17.3% from a year earlier. Ready-mix concrete declined 0.4% but was up 2.2% year-over-year.

Service inputs to residential construction fell 0.3% in July but were up 6.2% year-over-year. Trade services rose 7.0% year-over-year, other services increased 2.5%, and transportation and warehousing services climbed 10.9%.