Prices paid for goods used in residential construction increased 3.6% in May and have increased 16.5% over the past 12 months, according to the latest Producer Price Index (PPI) released by the Bureau of Labor Statistics. The PPI for softwood lumber increased 19.2% in May and set a record high for the fourth consecutive month, according to the National Association of Home Builders (NAHB). Recent data has indicated the PPI for lumber will likely decline in the June report as prices began to weaken in late May and early June.
Additionally, since May 10, the price of July lumber futures has declined 44.2%.
