PPI Softwood Lumber is a key metric used in the United States to track the price changes of softwood lumber. The PPI (Producer Price Index) measures the average change in selling prices received by domestic producers for their output. In the case of softwood lumber, the PPI measures the average price change for sawmills and other producers of softwood lumber.
Softwood lumber is an essential building material used in residential and commercial construction projects. The PPI Softwood Lumber index provides an indicator of the health of the construction industry by tracking the price fluctuations of the softwood lumber market.
The PPI Softwood Lumber index is calculated on a monthly basis by the Bureau of Labor Statistics (BLS) and is based on the prices received by producers of softwood lumber in the United States. The index is constructed by comparing the prices of a basket of softwood lumber products to their prices in a base period, which is currently set to 1982-84.
The PPI Softwood Lumber index is closely watched by economists, builders, and investors as a leading indicator of inflation and the health of the construction industry. Increases in the PPI Softwood Lumber index may signal rising inflation, while decreases may indicate a slowing construction industry.