According to the most recent producer price index (PPI) report published by the U.S. Bureau of Labor Statistics, inputs to residential construction, goods less food and energy, fell 0.09% over the month. This was the first decrease in the index since October of last year. While the index fell over the month, it was 2.91% higher than May of last year.
According to Eye On Housing, The seasonally adjusted PPI for final demand goods decreased 0.78% in May, after increasing a revised 0.41% in April. This was the largest decrease in the index for final demand goods since a 1.24% decline in October of last year. According to BLS, around 60% of the monthly decline in May was due to a 7.11% drop in the index for gasoline. Â The PPI for final demand energy and final demand foods both fell at 4.76% and 0.10% respectively. At the same time, the PPI for final demand goods, less foods and energy, rose 0.26%.
The seasonally adjusted PPI for softwood lumber fell for the first time since February, down 5% over the month. Prices for softwood lumber remain lower than last year at 8.10% below May of 2023. It was the 19th consecutive month where the softwood lumber index was lower than one year ago.