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US wholesale prices dropped in May
[Jun 14, 2024]


The Producer Price Index for final demand declined 0.2 percent in May, seasonally adjusted, the U.S. Bureau of Labor Statistics reported.  Overall, the Producer Price Index declined in May. So did Softwood Lumber.

Wholesale price increases fell in May, the latest sign that inflation pressures in the United States may be easing as the Federal Reserve considers a timetable for cutting interest rates.

The Labor Department reported Thursday that its producer price index ¡ª which tracks inflation before it reaches consumers ¡ª declined 0.2% from April to May after rising 0.5% the month before, pulled down by a 7.1% plunge in gasoline prices. Overall, it was the biggest drop in producer prices since October.

Here are the numbers for 10 key industry commodities:

Seasonally adjusted month-to-month % change

Construction input prices declined 0.9 percent in May, according to the Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics¡¯ Producer Price Index data released today. That's the first month-to-month decline since December of 2023.

"Construction input prices fell for the first time since December and, despite rising somewhat sharply over the first four months of 2024, are up just 2.1% year over year," said ABC Chief Economist Anirban Basu.

He added that combined with "cooler than expected" Consumer Price Index results for the same month, the stage is set for the Federal Reserve to begin to cut interest rates sooner than expected.

He added: "With contractor confidence regarding profit margins at the lowest level in seven months, according to ABC's Construction Confidence Index, falling materials prices and the prospect of lower interest rates in 2024 are welcome developments for the construction industry.¡±

Overall construction input prices are 2.1% higher than a year ago, while nonresidential construction input prices are 2.2% higher, the Washington, D.C.-based association reported.

Source:  hbsdealer.com