The latest construction update has arrived, and it’s all about the rising prices of building materials in most categories. Let’s look at what this means for the construction industry. Read on.
According to the latest Producer Price Index (PPI) report, building materials climbed 0.3% in March 2023. This comes after the index has increased for three consecutive months by a total of 1.6% but has been relatively stable over the past year.
Ready-mix concrete (RMC) prices continued their historic pace as the index increased 0.7% in March after gaining 0.9% and 0.6% in January and February, respectively.
The producer price index (PPI) for softwood lumber (seasonally adjusted) fell 4.0% in March–the eighth consecutive monthly decline.
Gypsum Building Materials
The producer price index (PPI) for gypsum building materials decreased 0.1% in March after increasing 0.4% the month prior.
Steel Mill Products
Steel mill products prices increased 1.2% in March after climbing 2.5% in February. This was the second monthly price increase since May 2022.
Transportation of Freight
The price of trucks, deep sea (i.e., ocean), and rail transportation of freight decreased by 0.8%, 0.5%, and 1.1%, respectively, in February.
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