The Producer Price Index (PPI) for final demand fell 0.1% in February following a 1.2% advance in January, reports the U.S. Bureau of Labor Statistics. However, glass and glass product manufacturing prices increased by 2.7% in February following a 3.3% rise in January. Prices for glass and glass product manufacturing last decreased in November when prices declined by 0.1%.
The report also showed the annual growth rate by producer prices slowed to 4.6% in February from 5.7% in January. The PPI measures the average prices producers receive for domestically produced goods and services.
According to media reports, the decline in U.S. producer prices potentially allows the Federal Reserve to pause interest-rate hikes. In fact, the PPI’s overall decline in February indicates that inflation is slowing demand. Federal Reserve chair Jerome Powell told lawmakers this past week that the jobs report, consumer price index and PPI will be factored into his decision to ease rate hikes.
Glass and Glazing Material Prices
Flat Glass – Prices for flat glass increased by 4.0% from January to February. This follows a 0.6% increase in January and a 0.2% decrease in December. Flat glass prices are up 11.7% compared to last year, a 3% jump from January.
Flat Glass Manufacturing – Flat glass manufacturing prices increased by 0.4% from January to February. The index also jumped 0.4% in January following a 0.5% decline in prices in December. Year-to-year, flat glass manufacturing prices are up 16.9%.
Fabricated Structural Metal Products – The prices for fabricated structural metal products decreased by 0.2% in February, continuing a trend of declining or stagnant prices. The index increased slightly in January (0.3%) following no increase in December and a 0.7% decrease in November. Year-to-year, prices remain up 2.3%.
Ornamental and Architectural Metalwork – Prices for ornamental and architectural metalwork decreased in February by 0.1%. The prices for this index have remained steady or decreased in the past five months. However, ornamental and architectural metalwork prices remain 11.5% higher than a year ago.
Metal Windows – Metal window prices remain unchanged for the fourth consecutive month. The last increase came in October 2022 (1.2%). The price for metal windows remains 11.7% higher than a year ago.
Metal Doors and Frames – Metal door and frame prices jumped 0.4% in February following two months of no increases. The price jump is the first such for this index since a 0.2% increase in November. Year-to-year, metal door and frame prices are 6.6% higher.
Builders’ Hardware – The price for builders’ hardware plunged by 4.1% in February following three months of rising prices. This is the first price decrease since a 0.6% decline in October 2022. Builders’ hardware prices remain 2.4% higher than a year ago.