On construction cost changes in August 2009

30.09.2009

Compared to July, construction costs in August 2009 slightly increased – on average by 0.1%, according to the data of Central Statistical Bureau. Growth of construction costs in renovation and construction of industrial, agricultural and trade buildings as well as in construction of multi-dwelling residential buildings had the greatest increasing impact on overall level of construction costs. In the meantime the decrease of construction costs in construction of underground main pipelines and in construction of office buildings had the greatest lowering impact on construction costs. Prices of building materials as well as maintenance and operational costs of machinery and equipment reduced - by 0.2% and 0.1%, respectively. Labour remuneration of workers, in turn, increased by 0.7%.

Compared to August 2008, construction costs in August 2009 on average decreased by 13.8%. Most rapid reduction (by 23.8%) among the main resource groups was observed in the labour remuneration of workers. Prices of building materials reduced by 10.9%, but maintenance and operational costs of machinery and equipment - by 4.5%. Reduction of construction costs in the construction of transport facilities and in the reconstruction and construction of industrial, agricultural and trade buildings had the greatest lowering impact on overall level of construction costs.

Every month 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 size and specialisation.

Prepared by Producer Price Indices Section
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Tatjana Ballode