Forest Product Index edged down in May
June 29, 2015 - The Forest Product Index was down by 0.2 per cent in May, when compared to the previous month, and down 11.5 per cent compared to May 2014.
However,strong U.S. housing permits in May and a growing backlog of sold, but not yet started units, point to stronger residential construction in the coming months, according to Patricia Mohr, vice-president of economics and commodity market specialist at Scotiabank.
“The basic supply of shelter in the U.S. is tightening, with apartment vacancy rates at a mere 4.2% per cent, propelling multiple-unit building permits to an annualized 592,000 units in May, the highest level since January 1990,” explained Mohr. “Western Spruce-Pine-Fir 2x4 lumber prices have jumped back to US$300 per thousand board feet from US$262 in April and US$256 in May.”
Scotiabank's Commodity Price Index climbed by 4.7 per cent month-over-month in May, for the second consecutive monthly gain, though the All Items Index remains 26.5 per cent below a year earlier.
Read the full Scotiabank Commodity Price Index online at:http://www.scotiabank.com/ca/en/0,,3112,00.html.