Residential building material price growth advances
Price growth for residential building material reaches its highest level since January 2023. This measure reported in August marks the fourth straight month of building material price growth.
According to the Producer Price Index (PPI) report published by U.S. Bureau of Labor Statistics, inputs to new residential construction fell 0.1% in August. This figure does not include capital investment, labor and imports but it does follow the 0.1% decrease in July. With figures from the PPI, the results from August reflect services price growth softened while the price of goods increased.
“On a year-over-year basis, the index for domestic goods increased 2.3%, while prices for imported goods fell 1.1% over the same period. Comparatively, service prices have risen more than good prices over the past year, rising 3.0% year-over-year. The combined index for inputs to new construction is up 2.1% on a yearly basis.” said Jesse Wade economist and director of tax and trade policy analysis for NAHB.
