Despite the prices for softwood lumber increasing for the first time since July 2022, prices of inputs to residential construction decreased 0.2% in April, according to the latest Product Price Index (PPI) report. The index has grown 0.5% year-to-date (YTD), the smallest YTD increase since 2020.
The PPI for goods inputs to residential construction, including energy, was unchanged over the month as a 1.7% increase in energy prices offset declines in other product categories. The index has declined 0.8% over the last 12 months but is 23.9% higher than the level suggested by the pre-2020 trend.
The PPI for gypsum building materials fell 1.1% in April after increasing in February and March. Gypsum building materials prices are 12.1% higher than they were a year ago but began stabilizing in September 2022. Prices have increased 0.6% in the seven months since.
The PPI for softwood lumber (seasonally adjusted) increased 6.2% in April–the first increase since July 2022 and just the second since March 2022. Prices have increased 0.9% YTD but are 40.1% lower than they were one year ago.
