Building materials prices fell 0.3% in September, the third consecutive monthly decline since June, according to the most recent Producer Price Index (PPI) report. The last three months have seen the largest three-month drop since April 2020, with prices of inputs to residential construction down a total 2.3%, NAHB Eye on Housing reports.
The PPI for softwood lumber fell 2.9% in September following a 5.2% drop in August, while prices for steel mill products decreased 6.7% in September and have fallen 16.1% over the past four months. Prices for ready-mix concrete, on the other hand, climbed 1.4% higher in September for the sixth consecutive month, and that index is up 11.6% year-over-year.
The price index of services inputs to residential construction decreased 0.8% in September, driven by lower building materials wholesalers’ margins and freight transportation prices. Services prices have declined each of the last six months by a combined 12.4% and are at the lowest level since 2021. Despite the six-month decline, the PPI for services inputs to residential construction is 3.3% higher than it was in September 2021.
Advertisement
Related Stories
Awards
6th Annual Most Valuable Product Awards
Drumroll ... Please join us in celebrating our 6th Annual MVP Awards winners, which represent the best in innovative building products
Sustainability
Fortera Takes Concrete Steps to Reduce the Climate Impact of Cement
Clean-tech company Fortera, which uses technology to capture carbon emissions form cement manufacturing, will open its first commercial-scale operation on April 12, 2024, in California
Building Materials
Lumber Leads Building Materials Prices Higher in March
Overall, the cost of building materials rose during March, with softwood lumber, gypsum products, and concrete all seeing price increases. Only steel mill materials saw price drops