Lumber and Building Materials Prices Post Record Monthly Decline in April

According to the latest Bureau of Labor Statistics, Producer Price Index (PPI) report, prices (not seasonally adjusted) paid for goods used in residential construction decreased -4.1% in April. The largest monthly decline on record. The year-to-date decline -5.4% in residential construction inputs prices is more than three times larger than the previous record of -1.3% in 2009. Since April 2019 building materials prices have fallen -6.6%, on average -0.6% per month. The index now stands at its lowest level since August 2017. Although the PPI report shows that softwood lumber prices declined -10.8% (seasonally adjusted) in April, the decrease is at odds with recent prices reported by Random Lengths. According to their weekly data, prices fell a more modest -2.7% over the month. The price on gypsum products and concrete also declined in April.