The producer price index (PPI) for final demand increased 0.1%, not seasonally adjusted (but was unchanged, seasonally adjusted), in August and 1.8% over 12 months, BLS reported on Wednesday. AGC posted an explanation and tables focusing on construction prices and costs. Final demand includes goods, services and five types of nonresidential buildings that BLS says make up 34% of total construction. There are no indexes yet for other building types, or for residential or nonbuilding construction. The PPI for final demand construction, not seasonally adjusted, was flat in August and rose 3.2% over 12 months.
The overall PPI for new nonresidential building construction-a measure of the price contractors say they would charge to build a fixed set of five categories of buildings-increased 0.1% for the month and 3.1% since August 2013. The PPI for new warehouse construction was flat in August and rose 2.2% over 12 months; offices, 0 and 3.1%, respectively; industrial and school buildings, 0 and 3.5% each; and health care buildings, 0.2% and 3.6%. PPIs for new, repair and maintenance work on nonresidential buildings by electrical contractors rose 0.3% and 1.0%; concrete contractors, 0 and 1.5%; plumbing contractors, 0 and 5.0%; and roofers, 1.4% and 5.4%.
The PPI for inputs to construction-an average of the cost of all materials used in construction plus items consumed by contractors, such as diesel fuel-was flat in August and increased 1.7% over 12 months. Major construction materials with notable one- or 12-month price swings included lumber and plywood, 1.5% since July and 11% since August 2013; hot-rolled structural shapes, 0 and 11%; aluminum mill shapes, 3.1% and 8.4%; gypsum products, -0.9% and 7.7%; asphalt felts and coatings, -1.1% and -7.1%; and diesel fuel, -0.3% and -3.9%.