Compared to the 2nd quarter of 2008, construction costs in Latvia in the 2nd quarter of 2009 reduced on average by 10.8%, according to the data of Central Statistical Bureau. Among the main resource groups most significant reduction was recorded in labour remuneration of workers (20.9%), as well as prices of building materials decreased noticeably - by 7.6%. Reduction of construction costs of transport facilities, as well as of the industrial, agricultural and trade buildings had the greatest influence on the total level of construction costs (3.3 and 2.5 percentage points, respectively).
Changes of construction costs by main resource groups,
Compared to May construction costs in June of this year on average decreased by 1.6%. Labour remuneration of workers decreased by 2.4%, prices of building materials – by 1.3%, maintenance and operational costs of machinery and equipment – by 1.2%. Reduction of construction costs of the industrial, agricultural and trade buildings and of transport facilities had the greatest lowering impact on the total level of construction costs (0.5 and 0.4 percentage points, respectively). Construction costs of these objects were lowered mainly by the decrease of the costs of metalwork.
Compared to June 2008, construction costs in June 2009 on average decreased by 13.5%. Most rapid reduction (24.7%) among the main resource groups 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 2.9%.
Prepared by Producer Price Indices Section