After gaining 0.5% in August, the final demand PPI rose 1.3% in September.
Compared to last year, final demand prices rose 6.3%.
Goods utilized in new residential construction (including energy) rose 1.8% over the month and 9.7% from last year, while services rose 2.2% and 11.3%.
The price index for new residential construction inputs rose 2.0% in September and 10.3% year-over-year.
Input Items
The goods component accounts for 60% of residential building price index inputs.
In September, new residential construction input prices rose 1.8% after climbing 0.9% in August.
The input goods to residential construction index has two components: energy inputs and leftover products.
The latter component, residential building materials, accounts for 93% of the goods index.
Energy input prices jumped 13.0% in September and 64.1% year-over-year.
Building material prices rose 0.4% in September and 5.5% year-over-year, the highest amount since 8.0% in December 2022.
Energiepreise rose faster than other materials.
No. 2 diesel prices rose 24.2% month-over-month and 115.2% year-over-year.
Unleaded regular gasoline prices grew 13.0% month-over-month and 66.1% year-over-year.
Beyond energy products, particleboard and fiberboard prices grew 3.5% and 7.8%, while mineral wool (f[RD2.1]or insulation) jumped 2.8% and 1.6% from a year ago.
Softwood veneer and plywood prices rose 2.7% month-over-month and 15.9% year-over-year.
Input Services
Residential construction service input prices climbed 2.2% in September.
Service input prices rose 11.3% year-over-year, the most since April 2022 when they rose 17.7%.
The price index for residential construction service inputs has three components: trade services, transportation and warehousing services, and other services.
Trade services account for 60%, followed by other services (29%), and transportation and warehousing (11%).
The largest component, trade services, rose 14.0% year-over-year.
Transportation and warehousing costs rose 19.3%, while other services rose 3.1%.
[Read more about this topic on eyeonhousing.org]