Dive summary:

• The housing recovery clearly is affecting the government index of prices for construction materials, with soft lumber going up 2% from January to February along with increases for concrete products and plumbing fixtures and fittings and standing 27% above the year before.
• The overall index for construction materials rose 1.3% month-over-month and was up 2% year-over-year, while nonresidential materials taken separately rose 1.4% from January and 1% from 12 months earlier.
• Demand globally for nonresidential materials appears ready to rise, Associated Builders and Contractors said, which could push prices up before a resulting increase in production and supply puts opposite pressure on them.

From the article:

“... 'For the second month in a row, contractors endured outsized price hikes for gypsum wallboard, lumber, and insulation materials,' said Ken Simonson, chief economist for the construction trade association. 'In addition, soaring diesel prices mean contractors are paying more for fuel they buy and, via fuel surcharges, for the thousands of deliveries of materials and equipment required for construction projects.' ..."