On changes in construction costs in the 2nd quarter of 2008

18.07.2008

Compared to the 2nd quarter of 2007, construction costs in Latvia in the 2nd quarter of 2008 rose on average by 16.0%, according to the Central Statistical Bureau. The most rapid rise (by 27.0%) was observed in the labour remuneration of workers. The maintenance and operational costs of machinery and equipment increased by 17.6% and the prices of building materials rose by 3.6%.

Construction cost changes by main resource groups, compared to corresponding quarter of previous year

Compared to the 1st quarter, construction costs in the 2nd quarter of this year increased on average by 3.5%. There were increases of 6.0% in the labour remuneration of workers, of 3.2% in the maintenance and operational costs of machinery and equipment, and of 1.1% in the prices of building materials.

Due to the high share of labour remuneration of workers, the most notable increase of construction costs was recorded in the renovation of office buildings (compared to the 2nd quarter of previous year there was a rise of 22.2% and of 5.2% if compared to the previous quarter). The lowest growth of construction costs, in turn, was recorded in the construction of family houses. Compared to corresponding period of previous year in the 2nd quarter of this year the construction costs in mentioned field increased by 9.3%, but in comparison with 1st quarter – by 2.4%. But construction costs in building of hotels rose by 9.8% and by 2.1%, respectively.

Prepared by Price Statistics Department
Producer Price Indices Section
Tel. 67366813
Aleksandrs Gržibovskis