Residential building material prices, excluding energy, rose 0.2% in August and were up 5.1% from a year ago. Energy prices rose sharply in August, as prices for energy inputs to residential construction rose 6.6% over the month. Prices for services also rose, up 1.5% over the month and 7.8% higher over the year.
The Producer Price Index for final demand was up 0.4% in August, after rising 0.1% in July. Compared to a year ago, final demand prices were up 5.4%. The index for final demand services rose 0.1% in August, while the index for final demand goods rose 1.1%.
The price index for inputs to new residential construction was up 1.1% in August and was up 7.8% from last year. The price of goods used in new residential construction (including energy) was up 0.9% over the month and up 7.8% from last year, while the price of services was up 1.5% over the month and up 7.8% from last year.
Input Goods
The goods component has a larger importance to the inputs to residential construction price index, representing around 60% of the total. On a monthly basis, the price of input goods to new residential construction was up 0.9% in August after rising 0.4% in July.
The input goods to residential construction index can be further broken down into two separate components, one measuring energy inputs with the other measuring remaining goods. The latter of these two components simply represents building materials used in residential construction, which makes up around 93% of the goods index.
Energy input prices rose 6.6% in August and were 46.2% higher than a year ago. Building material prices were up 0.2% in August and up 5.1% compared to one year ago.
Price increases for energy products outpaced other materials. No. 2 diesel fuel prices were up 17.7% over the month and 77.7% higher than a year ago. Unleaded regular gasoline prices rose 3.3% over the month and were 47.0% higher than a year ago. Outside of energy products, nonferrous wire and cable prices rose 2.4% over the month and were up 19.6% from a year ago. Softwood veneer and plywood prices rose 1.7% and were up 12.5% from a year ago. Some prices for products did fall over the month, as softwood lumber prices fell 2.5% but were still 13.0% higher than a year ago.
Input Services
Prices for service inputs to residential construction rose 1.5% in August. On a year-over-year basis, service input prices were up 7.8%. The price index for service inputs to residential construction can be broken out into three separate components: a trade services component, a transportation and warehousing services component, and a services excluding trade, transportation, and warehousing component (other services).
The most significant component is trade services (around 60%), followed by other services (around 29%), and finally transportation and warehousing services (around 11%). The largest component, trade services, was up 9.0% from a year ago. The price of transportation and warehousing services has risen 14.4% over the year, while prices for other services were up 2.6% over the year.
This article was originally published by a eyeonhousing.org . Read the Original article here. .
