Cost of Residential Construction Materials Increase in May

According to the latest Bureau of Labor Statistics (BLS) Producer Price Index (PPI) report, not seasonally adjusted prices for goods used in residential construction increased 0.6% in May. The May increase is only the fourth monthly increase in the past 12 months in the PPI for residential construction products. The index has declined -4.8% year-to-date (YTD), nearly four times the magnitude of the prior record for a May YTD decrease, which was a -1.3% drop in May 2009. Of note is the 3.1% increase in softwood lumber prices, which is in stark contrast to the -10.8% decline in April. Marking the third monthly increase over the past four months. Prices paid for softwood lumber are -2.7% below January 2020 levels but are 3.2% higher than they were in May 2019.