Lumber prices are at their highest level since September 2020, and after ending October with a slump, random length lumber futures have risen by about 23.44% and are trading at $649. A weaker US dollar and increased construction activity have catalyzed the recovery.
Construction spending in the USA on the rise
The US Department of Commerce announced on December 1 that construction spending in the country had increased by 1.3% in October. Analysts had predicted an increase of 0.8%. The increases followed the downward correction in September to a decline of 0.5%.
The construction of single-family homes largely contributed to the gains in October. For months now, the shortage of new single-family homes has been driving builders to step up such projects. As a result, the construction of these houses rose by 5.6% in October. This was one of the factors that enabled the 2.9% increase in private housing construction.