On construction cost changes in March 2009

08.05.2009

Compared to the 1st quarter of 2008 construction costs in Latvia in the 1st quarter of 2008 reduced on average by 3.5%, according to the data of Central Statistical Bureau. The most rapid decrease of construction costs was observed in the construction of hotels and family houses (by 7.5% and 7.1%, respectively), as well as in renovation and construction of education, healthcare and sports buildings (by 5.4%). Most rapid reduction (by 13.0%) among the main resource groups was observed in the labour remuneration of workers. But maintenance and operational costs of machinery and equipment grew by 6.3% (this trend was mainly observed among road building enterprises).

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

 

Compared to February construction costs in March of this year on average decreased by 2.6%. Most rapid decrease was observed in construction of office buildings – by 3.7%, as well as in construction of transport facilities (by 3.3%) and in construction of hotels (3.2%). Among main resource groups labour remuneration of workers (by 3.6%) and prices of building materials (by 3.4%) reduced.

Compared to March 2008 construction costs in Latvia in March 2009 on average decreased by 7.1%. The most rapid decrease of construction costs was observed in the construction of hotels and family houses (by 11.2% and 10.9%, respectively), as well as in renovation and construction of education, healthcare and sports buildings (by 8.8%). Among main resource groups the most notable reduction was recorded in labour remuneration of workers (by 19.3%) and prices of building materials (by 3.9%). But maintenance and operational costs of machinery and equipment grew by 4.8%. Growth of these costs was characteristic for road building enterprises.

Prepared by Producer Price Indices Section
tel. 67366798
Jeļena Dobkeviča