Experts: Lumber Prices Fall, and Economy May Follow

Prices of lumber and other raw materials are slumping, and that puts the economy at risk of a double-dip recession, experts say.

Until recently, many economists were concerned about an outbreak of inflation. But in the wake of Europe’s debt crisis, many are now worried about deflation.

Prices for framing lumber have dropped 21 percent just in the last five weeks, according to the National Association of Home Builders, CNNMoney.com reports.

Other industrial material prices are slipping in synch. (more)