Reports from the National Association of Home Builders show that residential construction investment (goods less food and energy) declined 0.04% in July. This is according to the latest report from the U.S. Bureau of Labor Statistics (BLS) on the Producer Price Index (PPI). The residential construction investment index (goods less food and energy) represents the building materials used in residential construction. Year-on-year, the index rose 2.01% in July, marking the sixth consecutive month of growth above 2%.
Just past the halfway point of 2024, the index’s year-to-date (YTD) increase is 0.47%, slightly higher but similar to the YTD growth rate for 2023, which was 0.44%.
The seasonally adjusted producer price index for final demand goods rose 0.62% in July after declining a revised 0.36% in June. In July, the producer price index for final demand energy rose 1.90%, final demand for food also rose 0.61%, and final demand for non-food and non-energy goods rose 0.24%. The BLS producer price indices measure the average change in selling prices that domestic producers receive for their output.
The seasonally adjusted producer price index for softwood lumber fell by 1.04% in July, after rising by 3.29% in June. Softwood lumber prices were 13.12% lower in July 2023.
The non-seasonally adjusted producer price index for gypsum building materials rose 0.08% in July, after no increase in June. Year-on-year, the index rose 4.25%, the highest annual increase since April 2023, when the index rose 12.14%.
The seasonally adjusted producer price index for ready-mix concrete rose 0.03% in July after falling 0.15% in June. Monthly price growth for ready-mix concrete has been relatively flat for four consecutive months after prices peaked in March. Year-on-year, ready-mix concrete prices were 5.05% higher in July 2023.
The non-seasonally adjusted producer price index for steel mill products fell for the second month in a row in July, declining by 3.29%. Steel mill product prices are 13.99% lower than a year ago. Overall, steel mill product prices have fallen by 36.99% since their peak in December 2021.
The non-seasonally adjusted producer price index for copper rose by 0.56% in July, after falling by 2.79% in June. Over the year, the index rose by 14.26%. This special group of copper raw materials includes the following raw materials: copper and nickel ores, copper cathodes and refined copper, copper scrap, secondary copper (alloyed and unalloyed), copper and brass rolled profiles, copper wire and cable, and copper castings (excluding die castings).
