Building Materials Prices Decline for 2nd Consecutive Month

By David Logan
NAHB – Eye on Housing
November 15, 2022
Category: Finance & Economics
Region: United States

The prices of building materials decreased 0.2% in October (not seasonally adjusted) following a 0.5% decline in September according to the latest Producer Price Index (PPI) report. The index has decreased four of five months for the first time since 2015. …The PPI for softwood lumber (seasonally adjusted) fell 1.7% in October following 5.5% and 3.1% declines in August and September, respectively. Softwood lumber prices are 4.4% higher than they were a year ago but have fallen 41.3% since March. …Steel mill products prices decreased 6.6% in October and have fallen 21.6% since May 2022. …The PPI for ready-mix concrete increased 0.4% in October but the pace of increases has slowed each of the past three months. ..The PPI for gypsum building materials edged 0.2% lower in October—just the second monthly decrease since September 2020. …Trucking freight prices fell 1.4%–the fifth consecutive decline—while the indexes for rail and deep sea transportation of freight decreased 0.7% and 1.8%, respectively.

Read More