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June saw a 23% drop in lumber prices

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June saw a 23% drop in lumber prices

June saw a 23% drop in lumber prices

Posted on July 25, 2022   |  

  • Since January 2020, the prices have surged 41.7%, building materials (i.e., goods inputs to residential construction, less energy) prices grew annually by 4.8% and compared to June 2021, prices are 12.2% higher.
  • The price index of services inputs to residential construction fell by 2.1% in June after a 2.0% decline in May due to low building materials retail and wholesale trade indices and the services PPI is 0.1% lower than 2021 and 37.6% higher than its pre-pandemic level.
  • Since January 2020, the average monthly change in the PPI for softwood lumber has been 2.6% which is nine times the average change (+0.3%) from 1947 to 2020,
  • While lumber prices were 19.7% unstable during the 1947-2020 period, they have been 100.1% more volatile than the broader index since January 2020.