Building Material Prices Remain Relatively Unchanged in May
According to the most recent producer price index (PPI) report published by the U.S. Bureau of Labor Statistics, inputs to residential construction, goods less food and energy, fell 0.09% over the month. This was the first decrease in the index since October of last year. While the index fell over the month, it was 2.91% higher than May of last year.
According to Eye On Housing, The seasonally adjusted PPI for final demand goods decreased 0.78% in May, after increasing a revised 0.41% in April. This was the largest decrease in the index for final demand goods since a 1.24% decline in October of last year. According to BLS, around 60% of the monthly decline in May was due to a 7.11% drop in the index for gasoline. The PPI for final demand energy and final demand foods both fell at 4.76% and 0.10% respectively. At the same time, the PPI for final demand goods, less foods and energy, rose 0.26%.
The seasonally adjusted PPI for softwood lumber fell for the first time since February, down 5% over the month. Prices for softwood lumber remain lower than last year at 8.10% below May of 2023. It was the 19th consecutive month where the softwood lumber index was lower than one year ago.