In a sign of global demand for commodities, along with a weak U.S. dollar, the price of construction materials increased 0.6 percent in October, according to the November 16 producer price index (PPI) report by the U.S. Labor Department. Construction material prices are up 4.8 percent from the same time last year (see graph below).

The largest price increase was for nonferrous wire and cable, up 4.3 percent in October, the largest monthly jump since August 2009, and 10.9 percent higher over the last twelve months.  Steel mill prices were up 1.4 percent for the month and are 12 percent higher than one year ago. Prices for plumbing fixtures and fittings rose a modest 0.3 percent for the month and are up 1.3 percent on a year-over-year basis. Prices for concrete products were unchanged for the second straight month and are down 0.5 percent from October 2009.

In contrast, fabricated structural metal product prices were down for the third straight month, 0.4 percent lower in October and down 2.2 percent from the same time last year.  Iron and steel producer prices slipped 0.8 percent compared to September, but are still 14.1 percent higher compared to October 2009.  Softwood lumber prices slid for the fifth straight month, down 1.1 percent in October, but are still up 4.9 percent from the same time last year.  Producer prices for prepared asphalt, tar roofing, and siding fell 1.2 percent in October but are 0.8 percent higher over the last twelve months.

Crude energy prices climbed 5.4 percent in October largely due to an 8.7 percent increase in crude petroleum prices. Crude energy prices are 8.2 percent higher than levels experienced in October 2009. Overall the nation’s wholesale prices increased 0.4 percent in October and are 4.3 percent higher than one year ago.