Residential Construction Costs in USA Decline for the First Time Since October 2023

USA: The most recent producer price index (PPI) report from the U.S. Bureau of Labor Statistics revealed a 0.09% decline in inputs to residential construction, excluding food and energy, for the month. This index tracks the cost of building materials used in residential construction. This marks the first decrease since October of last year.

Despite the monthly drop, the index remains 2.91% higher than it was in May of the previous year, according to the National Association of Home Builders.

Additionally, the seasonally adjusted producer price index (PPI) for final demand goods fell by 0.78% in May, following a revised 0.41% increase in April. This was the largest decrease in the index for final demand goods since a 1.24% drop in October of the previous year.

Source: LBM Journal