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The prices of inputs to residential construction fell marginally by 0.1% in May, the second consecutive monthly decrease after a 0.2% drop in April. Year to date, the Producer Price Index (PPI) for prices of inputs to residential construction has increased 0.3%, a much smaller magnitude increase than the 10.2% and 4.9% increases through the first five months of 2021 and 2022, respectively.

The PPI for goods inputs to residential construction, including energy, declined 0.5% as energy prices drove the index lower. The index has declined 2.7% over the past 12 months but is 36.0% higher than it stood in January 2020.

The PPI for gypsum building materials fell 1.1% for the second month straight and is down 0.4%, year-to-date. Gypsum building materials prices are 4.0% higher than they were a year ago but at the lowest level since July 2022.

The PPI for softwood lumber (seasonally adjusted) decreased 3.1% after increasing 6.2% the prior month. Softwood lumber prices have declined 10 of the past 12 months and are 41.9% lower than they were one year ago.

The price index of services inputs to residential construction decreased 1.0% in May after rising 0.5% in April. Prices have declined 12.4% over the past year but have been relatively stable in 2023, down just 0.5% through May.

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