The price level of inputs to residential construction were unchanged in June 2023, marking the third consecutive month where the Producer Price Index (PPI) did not increase. Year-to-date, the index has increased 0.5% and has not increased 1% or greater in any month since March 2022.

The Producer Price Index for all final demand goods was unchanged in June following a 1.6% decline in May (seasonally adjusted). Year-over-year, the index declined 0.2% while the PPI for final demand goods less food and energy increased 2.0% (not seasonally adjusted). The growth rates of the indices for final demand goods and final demand goods less food and energy have slowed 12 and 15 consecutive months, respectively, neither of which has occurred since the inception of the series.

The PPI for goods inputs to residential construction, including energy, has decreased 3.6% over the past 12 months—the largest 12-month decline since October 2009. June was the second consecutive month in which prices were unchanged.

The PPI for softwood lumber (seasonally adjusted) increased 3.9% in June—the second increase over the past three months. Although prices are up 7.2% over that period, the index has decreased 20.9% over the past year and has fallen by more than half since its June 2021 peak.