US Building Materials Price Growth Plummets in 2023

By David Logan
NAHB – Eye on Housing
January 12, 2024
Category: Finance & Economics
Region: United States

According to the latest Producer Price Index report, growth in the average price level of inputs to residential construction less energy (i.e., building materials) fell from 15.0% in 2022 to 1.3% in 2023 (not seasonally adjusted). On a monthly basis, building materials prices rose 0.1% in December after increasing 0.1% in November (revised). …The PPI for softwood lumber (seasonally adjusted) declined 2.3% in December, the third consecutive decrease and the fourth over the past five months. The index has fallen 14.5% since reaching its 2023 high in July. …The PPI for gypsum building materials declined 0.3% in December and have not increased since March 2023. …Ready-mix concrete (RMC) prices decreased 0.2% in November (SA), just the fourth decline over the last 36 months. …Steel mill products prices climbed 3.3% in December, the first increase since May. 

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