Building products prices on the decline
Softwood lumber prices fall for third consecutive month.
Prices paid for materials used in residential construction decreased by 1.1% in June, on a non-seasonally adjusted basis, according to the latest Producer Price Index (PPI) from the Bureau of Labor Statistics.
The decline represents the end of four months of increases and was only the fifth month in the past two years when prices fell, according to the National Association of Home Builders (NAHB).
Over the past 12 months, building materials prices have decreased 1.6%, just the fifth June year-over-year decrease since 2000. The decline is a reversal of June 2017 to June 2018 when prices jumped 8.8%.
According to the PPI, softwood lumber prices fell 1.7% in June, the third consecutive month of declines with prices at their lowest levels since February 2017. Also, the lumber and plywood index fell 2.3%. Prices paid for softwood lumber and lumber and plywood have decreased 23.1% and 17.6%, respectively, since June 2018.
The price index for gypsum products continued its downward trend in June, declining 1.9%. In the last 10 months, gypsum prices have only increased twice.
The full Producer Price Index for June 2019 is available here.
No comments found