The downward trend in prices paid for gypsum products continued in February, as prices declined 5.1% (seasonally adjusted) according to the latest Producer Price Index (PPI) released by the Bureau of Labor Statistics. Prices paid for gypsum products have fallen 8.6% and 9.8% since the start of 2019 and August 2018, respectively. The trend is notable as prices have fallen five of six months since the most recent peak last August. In addition, the year-to-date decrease is the largest in nearly a decade, the National Association of Home Builders says.
Overall, the price of goods used in residential construction increased 0.8% in February (not seasonally adjusted)—the first increase in five months. Softwood lumber (+2.3%) and OSB (+4.3%) offset the large decline in prices paid for gypsum products.
See more at NAHB’s Eye on Housing blog.