Source: NAHB —
The prices of building materials decreased 0.3% in November (not seasonally adjusted) following 0.5% and 0.1% declines in September and October, respectively, according to the latest Producer Price Index (PPI) report. The index has decreased five of six months for the first time since 2015.
The PPI for goods inputs to residential construction, including energy, fell 0.8% in November. The index was led lower by a 5.3% drop in energy input prices as the PPIs of regular unleaded gasoline and No. 2 diesel fuel — which comprise more than 80% of energy inputs to residential construction — decreased 6.7% and 4.5%, respectively.
The price index of services inputs to residential construction increased 0.6% in November, propelled higher by large increases in the price of financial and real estate services. It marked the second consecutive monthly increase after six straight months of falling prices.