Building Materials Prices Inch Higher in November

According to the latest Producer Price Index report, the price level of inputs to residential construction less energy (i.e., building materials) increased 0.2% in November after declining 0.4% in October (revised, not seasonally adjusted). The index has increased 0.8% (not seasonally adjusted) year to date, marking the smallest year-to-date gain through November since it fell 0.2% over the first 11 months of 2019. Prices have increased 36% since February 2020.

Individual building materials primarily saw decreases or remained unchanged:

Ready-Mix Concrete: Prices gained 0.1% in November (seasonally adjusted) as monthly price growth slowed for the second consecutive month. Year-over-year price growth also decelerated for the second month straight and has declined to 9.4% since reaching its 2023 high of 13.3% in May (not seasonally adjusted).

Gypsum Building Materials: The PPI was unchanged in November after falling slightly in October (not seasonally adjusted). Gypsum building materials prices last increased in March 2023 and have declined 1.6% year to date.

Steel Mill Products: The price decreased 1.5% in October (not seasonally adjusted). The index for steel mill products prices has declined each of the past six months by a total of 13.9% and is at its lowest level since March 2021.

Softwood Lumber: Price declines accelerated in November as the index dropped 5.8% (seasonally adjusted), more than double the October decrease. The index has fallen 19.7% over the past 12 months (not seasonally adjusted) and is lower than it has been at any point since March 2020.

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