On construction cost changes in January 2010

04.03.2010

Compared to the December 2009, construction costs in Latvia in January 2010 rose on average by 2.5%, according to the data of the Central Statistical Bureau. Labour remuneration of workers increased by 9.0%, prices of building materials - by 1.2%, maintenance and operational costs of machinery and equipment - by 0.1%.

Compared to January 2009, construction costs in January 2010 on average diminished by 10.1%. Most rapid reduction (by 12.9%) among the main resource groups was observed in the labour remuneration of workers. The maintenance and operational costs of machinery and equipment decreased by 8.7% and the prices of construction materials - by 8.6%. Reduction of construction costs in the construction of transport facilities, as well as in the renovation and construction of education, healthcare and sports buildings, which had the greatest share in construction volume in 2009, had the greatest lowering impact on overall level of construction costs.

 

Dynamics of construction costs by main resource groups
compared to corresponding month of previous year

 


In January 2010, similarly to the previous years, the weights used in the calculations of construction cost index were updated. The breakdown of own account construction work of 2009 by groups of construction objects is used as weights. The prices of December of the previous year serve as the base prices.

Data on the prices of construction resources are obtained from approximately 140 construction enterprises and 35 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