US Residential Construction Input Prices Climb in August

A closer look at the Bureau of Labor Statistics (BLS) Producer Price Index for August, with analysis by the National Association of Home Builders (NAHB), shows that prices for inputs to new residential construction rose 1.1% in August and were up 7.8% from a year earlier.

Input goods, which account for about 60% of the index, rose 0.9% monthly after increasing 0.4% in July. Energy input prices rose 6.6% and were 46.2% higher than a year ago.

Residential building material prices, excluding energy, increased 0.2% and were up 5.1% year-over-year.

Service inputs to residential construction rose 1.5% and advanced 7.8% from a year earlier.