FAQ

What is the PPI for inputs to residential construction?

The PPI for inputs to residential construction measures the change in prices for building materials used in residential construction. It rose 0.19% in June.

How did the PPI for final demand goods change in June?

The seasonally adjusted PPI for final demand goods decreased 0.55% in June, with final demand energy and final demand foods also experiencing decreases.

What was the change in the PPI for softwood lumber in June?

The PPI for softwood lumber rose 3.41% in June after falling 5.00% in May. Prices for softwood lumber are 7.41% lower than June 2023.

Is the PPI for steel mill products higher or lower compared to last year?

The non-seasonally adjusted PPI for steel mill products fell 1.18% in June compared to May, and prices were lower by 15.01% compared to June of the previous year.

Conclusion

The latest producer price index (PPI) report from the U.S. Bureau of Labor Statistics shows a mixed picture for building material prices in June. While some materials like softwood lumber and ready-mix concrete saw price increases, others like steel mill products experienced declines. Overall, input costs for residential construction materials have continued to rise, posing challenges for home builders dealing with higher prices.

It will be important for construction firms to closely monitor these price trends and adjust their budgets accordingly to navigate the ongoing fluctuations in the cost of building materials.