Compared to February, construction costs in March 2010 decreased on average by 0.2%, according to the data of Central Statistical Bureau. Labour remuneration of workers decreased by 1.6%, while maintenance and operational costs of machinery and equipment grew by 0.7%. Prices of construction materials did not change significantly.
Compared to March 2009, construction costs in March 2010 diminished on average by 4.7%. The most notable reduction among main resource groups was seen in maintenance and operational costs of machinery and equipment (6.9%). Prices of construction materials decreased by 4.3%, labour remuneration of workers dropped by 2.7%. Reduction of construction costs in the construction of transport facilities; in the construction of underground main pipelines, as well as in the reconstruction and construction of industrial, agricultural and trade buildings had the greatest lowering impact on the overall level of construction costs.
|Changes of construction costs by main resource groups compared to corresponding month of previous year|
Compared to the 1st quarter of 2009, construction costs in the 1st quarter of 2010 decreased on average by 7.3%. Maintenance and operational costs of machinery and equipment decreased by 7.5%, labour remuneration of workers – by 7.0%, and prices of building materials - by 6.9%. Reduction of construction costs in the construction of transport facilities, as well as in the renovation and construction of education, healthcare and sports buildings had the greatest lowering impact on overall level of construction costs.
Data on the prices of construction resources are obtained from 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.
More detailed information is available in the CSB data base. Press release on changes of construction costs in April 2010 will be published on 1 June 2010.
Prepared by Producer Price Indices Section