Single-family building permits drop -3% YOY in September to 845,000

Privately-owned housing units authorized by building permits in September were at a seasonally adjusted annual rate of 1,400,000, -0.2% below the revised August rate of 1,403,000 and -3% below the Sept. 2025 rate of 1,444,000. The U.S. Census Dept. said single-family authorizations in September were at a rate of 845,000, -4% below the revised August figure of 880,000. 

September PPI construction input costs rise +11.9% YOY

The Producer Price Index published monthly by the U.S. Census Dept. for inputs to new nonresidential construction jumped +11.9% from Sept. 2025 to Sept. 2026, the most in four years, according to an analysis by the Associated General Contractors of America (AGC) of government data.
Association officials said construction firms appear to be absorbing most of the cost increases amid relatively soft demand for construction projects except data centers. AGC said construction firms are getting hit with a “double Whammy” of rising materials and fuel costs and delayed delivery schedules for steel components while soft demand makes it hard for firms to raise bid prices.
“Construction firms are being hit by a double whammy of tariff- and war-induced materials cost increases as higher metals and fuel costs permeate an ever-wider range of prices,” said Ken Simonson, the association’s chief economist, in the press release. “Making matters worse, lead times for key steel components have lengthened, making it harder for contractors to keep projects on schedule.”
The largest price increases affected petroleum products. The Producer Price Index for diesel fuel, which reflects prices at the refinery or fuel terminal level, more than doubled over the past 12 months, rising +115.2%. The index for truck transportation of freight increased +19.3%, as motor carriers passed on their fuel costs.
Metals prices have also risen steeply since tariffs of up to 50% were imposed in 2025. Prices climbed year-over-year by +25.2% for aluminum mill shapes; +27.6% for steel mill products; and +30% for copper and brass mill shapes.