The producer price index (PPI) for finished goods jumped 1.1% from February to March, not seasonally adjusted (0.7%, seasonally adjusted), and 6.0% over 12 months, the Bureau of Labor Statistics (BLS) reported on April 22. The PPI for inputs to construction industries, a weighted average of materials used in every type of construction, plus items consumed by contractors such as diesel fuel, rose 1.3% and 4.8%. By segment, the increases were: highway and street construction, 1.6% and 8.5%; other heavy construction, 1.6% and 5.3%; nonresidential buildings, 1.3% and 4.4%; multi-unit residential, 1.0% and 3.0%; and single-unit residential, 1.0% and 2.8%. The increases were driven by jumps in the PPIs for several materials: diesel fuel, 8.9% and 62%; steel mill products, 3.4% and 11.3%; lumber and plywood, 2.2% and 14%; and plastic construction products, 1.4% and 2.7%. Gypsum products rose 1.0% for the month but were still down 9.1% from a year before. Conversely, two PPIs fell for the month but jumped from a year ago: copper and brass mill shapes, -3.3% and 47%; and aluminum mill shapes, -1.5% and 13%. The materials price rise worsened the squeeze on contractors, which continued cutting prices for finished buildings and subcontracting work: new warehouse construction, -0.2% and -5.7%; industrial buildings, -0.5% and -5.3%; offices, -0.3% and -4.8%; schools, 0 and -2.2%. The PPIs for new and remodeling nonresidential building work by electrical contractors fell 0.3% and 3.5%; roofing, -0.4% and -1.9%; concrete, +0.4% and -1.9%; and plumbing, -0.3% and +0.5%.
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