Building materials prices rose 0.4% in July after surging 35.7% since January 2020, though 80% of the increase has occurred since January 2021, NAHB Eye on Housing reports. The PPI for ready-mix concrete (RMC) jumped 2.5% higher in July and is up 6.8% year-to-date, the largest YTD July increase recorded in the series’ 34-year history.
After much volatility throughout the pandemic, the PPI for softwood lumber saw just a modest 2.3% increase in July, but prices have fallen 28.2% year-to-date. Prices increased the most in the South (3.5%), but also posted gains of 2.9%, 1.6%, and 1.2% in the Midwest, West, and Northeast regions, respectively.
The PPI for goods inputs to residential construction, including energy, decreased 1.2% as the prices of #2 diesel and unleaded gasoline fell 16.6% and 16.7%, respectively.
The price index of services inputs to residential construction was driven 1.4% lower in July—the third consecutive monthly decline—by a 3.8% decrease in the building materials retail index. The services PPI is 3.0% higher than it was 12 months prior and 34.9% higher than its pre-pandemic level.
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