Building Material Price Growth Minimal in April
In April 2025, the Producer Price Index (PPI) for inputs to new residential construction—excluding capital investment, labor, and imports—fell by 0.4%, following a revised increase of 0.8% in March. Year-over-year, the index grew by 0.6%, indicating a modest rise in construction input costs.
Breaking down the components, the goods segment, which accounts for approximately 60% of the total index, decreased by 0.2% in April. Within this segment, building material prices dipped by 0.3% from March but were up 2.2% compared to the same month last year. Energy input prices saw a slight monthly increase of 0.1% but remained 17.6% lower than a year ago, marking the ninth consecutive month of year-over-year declines in energy costs.
Service inputs to residential construction experienced their first monthly decline in five months, dropping by 0.6% in April. Despite this monthly decrease, service input prices were 0.6% higher than in April 2024. The service inputs are divided into trade services (around 60%), other services (approximately 29%), and transportation and warehousing services (about 11%). Year-over-year, trade services increased by 0.2%, other services by 1.4%, and transportation and warehousing services by 0.6%.
