Hardware Retailing The Industry's Source for Insights and Information
Residential building material price growth accelerated in February after slowing a month prior, according to the latest Producer Price Index release from the Bureau of Labor Statistics (BLS).
The Producer Price Index for final demand increased 0.7% in February, a 0.2% increase from January. The index for final demand services rose 0.5%, while the index for final demand goods rose 1.1%, the largest monthly increase since August 2023.
The price index for inputs to new residential construction rose 0.7% in February, up 3.4% year over year. Goods were up 1.1% over the month and 3.0% from last year, while services were up 0.1% over the month and 4.2% from last year.
Input Goods
The goods component represents around 60% of the residential construction price index. Monthly, input goods prices were up 1.1% in February, the first increase over 1.0% since January 2025. Energy input prices rose 9.3% in February but were 3.5% lower year over year. Building material prices were up 0.6% in February and up 3.5% year over year.
The largest year-over-year price increases continue to show in metal products, metal molding and trim is up 61.7%, metal windows up 20.2% and all metals up 16.6% from last year. Yearly price declines were seen in particleboard and fiberboard (-17.4%) and softwood veneer and plywood (-4.0%).
Input Services
Prices for service inputs to residential construction reported an increase of 0.1% in February. On a year-over-year basis, service input prices were up 4.2%. 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 5.8% from a year ago. The transportation and warehousing services rose 3.0%, while prices for other services were up 1.3% over the year.
