Softwood lumber prices slip a little more
The latest Producer Price Index report from the U.S Bureau of Labor Statistics shows a steady-as-she-goes August-to-September pricing story. The PPI for final demand was unchanged in September, seasonally adjusted.
But there’s a major change at the top of the HBSDealer PPI tracker, which has Plywood displacing softwood lumber as the year-over-year deflation leader. Softwood lumber had been leading that category for well over a year.
Here are how ten key industry commodities fared in the latest PPI report.
Meanwhile, an independent tally from the industry group Associated Builders and Contractors
Found construction input prices decreased 0.9 percent in September, compared to the previous month. Nonresidential construction input prices also decreased 0.9% for the month.
“The decline in construction input costs observed in September was almost entirely due to a large decrease in oil prices,” said ABC Chief Economist Anirban Basu.
“Certain materials, like gypsum, fabricated structural-metal products, asphalt and lumber exhibited sizable price increases for the month. While domestic freight rates are low by historical standards, elevated global container-shipping rates and emerging supply chain issues could put upward pressure on materials prices in the coming months. This represents a cause for concern for contractors, many of whom expect their profit margins to contract over the next six months.”
