On construction cost changes in 2009

01.02.2010

Compared to 2008, construction costs in 2009 in Latvia on average decreased by 10.9%, according to the data of Central Statistical Bureau. Most rapid reduction (by 21.8%) among the main resource groups was observed in the labour remuneration of workers. Prices of building materials reduced by 7.5%, but maintenance and operational costs of machinery and equipment - by 1.6%.

Compared to November, construction costs in December 2009 on average decreased by 0.9%. Labour remuneration of workers decreased by 1.7%, maintenance and operational costs of machinery and equipment - by 1.6%, and prices of building materials - by 0.3%. Reduction of multi-dwelling residential building and transport facility construction costs had the greatest impact on the overall level of the construction costs.

Compared to December 2008, construction costs in December 2009 on average decreased by 13.9%. The most rapid reduction (by 26.1%) was observed in the labour remuneration of workers. Prices of building materials reduced by 9.1%, but maintenance and operational costs of machinery and equipment - by 9.0%. Reduction of construction costs in the construction of transport facilities, as well as in the reconstruction and construction of industrial, agricultural and trade buildings had the greatest impact on overall level of construction costs during a year.

Compared to the 3rd quarter construction costs in the 4th quarter 2009 decreased on average by 2.6%. Labour remuneration of workers decreased by 5.3%, maintenance and operational costs of machinery and equipment - by 2.1%, and prices of building materials - by 1.5%. During this period the decrease of construction costs in the construction of transport facilities had the most significant lowering impact on overall level of the construction costs.

Compared to the 4th quarter of 2008, construction costs in Latvia during the 4th quarter of 2009 on average decreased by 14.6%. Most rapid reduction (by 27.4%) among the main resource groups was observed in the labour remuneration of workers. Prices of building materials reduced by 9.7%, but maintenance and operational costs of machinery and equipment - by 7.4%.

 

Changes of construction costs by main resource groups,
compared to corresponding quarter of previous year 

 

 

Data on the prices of construction resources are obtained from 132 construction enterprises and 29 trade enterprises. Construction enterprises provide price data for all resources while trade enterprises indicate only the prices of building materials. The construction enterprises-respondents are selected by way of target sampling choosing the enterprises with the highest value of own account construction. The sampled construction enterprises differ in specialisation and represent various regions of Latvia. The criterion for the sample of trade enterprises is their turnover and specialisation.

 

Prepared by Producer Price Indices Section
Tatjana Ballode
tel. 67366813