Softwood Lumber Prices Dip
Originally Published by: HBS Dealer — November 25, 2025
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The Producer Price Index for final demand increased 0.3 percent in September, seasonally adjusted, the U.S. Bureau of Labor Statistics reported Tuesday.
Final demand prices declined 0.1 percent in August and rose 0.8 percent in July.
On an unadjusted basis, the index for final demand moved up 2.7 percent for the 12 months ended in September.
Here is the pricing movement for 10 major commodities of the hardware and building supply industry:
Based on analysis from the Associated Builders and Contractors, construction input prices increased 0.2% in September compared to the previous month. Nonresidential construction input prices also increased 0.2% for the month.
Overall construction input prices were 3.5% higher than in September 2024, while nonresidential construction input prices were 3.8% higher. Prices decreased in all three energy categories in September. Natural gas and unprocessed energy materials prices were down 8.7% and 3.0%, respectively, while crude petroleum prices were down 1.7% in September.
“Construction input prices rose for the fifth straight month in September,” said ABC Chief Economist Anirban Basu. “While that represents the longest streak of monthly increases since the first half of 2022, those increases are relatively modest. Materials prices have risen at a 3.2% annualized rate since April, a rate that is faster than ideal but nowhere near the escalation that occurred in 2021 and 2022.”
Note that September PPI data collection was completed before the government shutdown.
The September advance in the index for final demand is attributable to a 0.9-percent increase in prices for final demand goods.
Prices for final demand less foods, energy, and trade services edged up 0.1 percent in September after rising 0.3 percent in August.
For the 12 months ended in September, the index for final demand less foods, energy, and trade services increased 2.9 percent.