NAHB Eye On Housing in reporting the Bureau of Labor Statistics (BLS) released the Producer Price Indexes (PPI) for August. Inflation in prices received by producers (prior to sales to consumers) were unchanged in August following a 0.2% increase in July. Separately, a 0.4% increase in prices for services was offset by a 0.6% decline in prices for goods, driven mainly by falling gas prices. Excluding food and energy, goods prices were -0.2% lower in August.
Among building materials, softwood lumber prices partially reversed the 2.4% increase in July, declining 2.2% in August. Prices have hovered in this range since early 2014. Similarly, OSB price dropped 0.8% after a 1.0% increase in July. Overall, soft overseas demand has kept domestic supply at home placing downward pressure on prices.
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