Residential construction product prices gradually increasing
Diesel prices are rising at fast pace during past two months.
Prices paid for residential construction products increased 1.5% in March on a non-seasonally adjusted rate, according to latest Producer Price Index from the Bureau of Labor Statistics.
Analysis of the data from the National Association of Home Builders reveals prices have been rising faster in 2019 than they did during the same period in 2018 while reaching their highest level since last October.
The average price increase from January to March since 2000 is about 1.1%. In the first three months of 2017 price rose 0.7% and grew 1.9% for the first quarter of 2018. But this year prices have risen 2.3% during the three-month span.
The latest PPI report indicates that the pace of softwood lumber price increases has calmed some with prices rising 2.3% in February but just 0.5% last month. Meanwhile, the PPI for softwood lumber has declined 13.3%. Although the PPI does not include prices paid for imports, Canadian lumber imports indirectly affect the price of domestic softwood lumber.
OSB prices fell 6.1% in March, the fourth decrease over the past six months, as gypsum product prices declined 0.3% last month. The NAHB notes that gypsum prices have fallen in six of the past seven months by a total of 10.1% since a peak in August.
Ready-mix concrete prices have been flat but diesel fuel prices rose 12.6% in March after increasing 7.2% in February. Prices have increased 20.7% overall since a two-month, 23.1% decline between November 2018 and January 2019.
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