The latest data from the Bureau of Labor Statistics show that prices for building materials continue to rise. The softwood lumber index increased 2.2 percent, structural steel increased 2 percent, and OSB rose highest, 9.3 percent from February.
The price of ready-mix concrete (RMC) increased 3.3 percent (seasonally adjusted) in March 2018 from February, which the National Association of Home Builders says is the largest percentage increase since January 2006. The NAHB pointed out that the price change for RMC month-over-month has only been greater than 3 percent twice over the past 15 years. While the price of softwood lumber evened out in March, the index has increased each month of 2018 by an average 2.9 percent, surpassing the average over the same period in 2017.
The 9.3 percent increase in OSB prices follows February’s 3.1 percent gain and is the largest monthly climb since October 2017 (+14.1 percent). After a three-month downward trend, OSB prices have risen 12.6 percent over the past two months. The 9.3 percent increase is larger than recent Random Lengths data would suggest, but is consistent with last month’s post. That article noted that last month’s 9.5 percent increase in the Random Lengths OSB index “[would] likely be captured in [April’s] PPI release.”
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