MBD says the dip, which relates to sawn and planed softwoods and hardwoods, plus panels, followed a 2% decline in 2004.
The report says market development has remained restricted during the current decade, with value sales masking a more positive development in volume terms.
MBD predicts a 1% market growth between 2005 and 2010, due to subdued economic growth, reduced consumer confidence and more modest housing market growth.
The builders’ carpentry and joinery sector is expected to expand by 4% during the same period, while the sawmilling and planing sector is headed for a 1% decline.
Growth areas highlighted by MBD include timber frame housing, decking and wood flooring.
