The producer price index for new residential construction increased 5.6% from April to May, according to an analysis by the Associated General Contractors of America. Compared with May 2021, the PPI for new residential construction increased 13.8%.
Multiple construction materials saw double-digit price increases year-over-year, including architectural coatings, which surged 31.6%. The producer price index for diesel fuel shot up 84.9% compared with May 2021.
The producer price index for lumber and plywood dropped 14.5% year-over-year. Lumber futures have plunged more than 50% since March.
“Higher construction prices run the risk of forcing public agencies and private developers to rethink planned projects,” AGC CEO Stephen E. Sandherr said in a statement. “Federal officials need to remove remaining tariffs, support a competitive materials market, and take every possible step to support a supply chain struggling to restart after the pandemic.”
