April 2024 marked a significant upturn in softwood lumber prices, rising for the second consecutive month, with an increase of 6.2% from March, according to the U.S. Bureau of Labor Statistics. This rise is a key indicator of a potential stabilization in the market, even though prices remain 4.3% lower compared to April of the previous year.
In contrast, hardwood lumber also displayed a modest improvement, with a year-over-year increase of 1.4%. The prices for hardwood lumber increased slightly by 1.8% from March to April, showcasing a less volatile market compared to softwood. Plywood prices followed a similar trend, increasing by 1.1% in April, indicating a steady demand in both the construction and manufacturing sectors.
Overall, the Producer Price Index for final demand rose by 0.5% in April, seasonally adjusted, showing a rebound from a 0.1% decline in March. This increase brings the year-on-year change to 2.2%, marking the largest increase since the period ending April 2023. Notably, nearly three-quarters of the April advance in final demand prices is attributable to a 0.6% increase in the index for final demand services, while prices for final demand goods moved up by 0.4%.
The index for final demand less foods, energy, and trade services also moved up by 0.4% in April after a 0.2% rise in March. For the 12 months ended in April, this index increased by 3.1%, reflecting the largest advance since a 3.4% increase for the year ending April 2023.
