On changes of construction costs in February 2012

27.03.2012

Compared to January, construction costs in Latvia in February 2012 decreased on average by 0.3%, according to the data of the Central Statistical Bureau. Prices of building materials rose by 1.2% and maintenance and operational costs of machinery and equipment increased by 1.1%. In its turn, labour remuneration of workers decreased by 5.2%, which can be mainly explained with the drop in work volume in construction of bridges and roads.

As compared to February of the previous year, the overall level of construction costs rose by 4.7%. Maintenance and operational costs of machinery and equipment increased by 16.6%, labour remuneration of workers rose by 3.2% and prices of building materials rose by 0.2%.

During the year the overall level of construction costs was mostly influenced by the cost growth in the construction of underground main pipelines.

Changes in construction costs by main resource group
compared to the corresponding month of the previous year, %

 

Changes in construction costs by type of construction,
compared to the corresponding month of the previous year, %

In 2012 the price data on construction resources are obtained from about 180 construction enterprises and 30 trade enterprises. Moreover, construction cost calculations are based on the prices of building materials submitted by the enterprises for the calculation of producer price indices in industry and import price indices.

The sample includes construction enterprises with the highest value of own account construction works in 2011. The share of enterprises with the work volume exceeding LVL 1 million comprised 75%, in 21% of which the volume of own account construction works rose above LVL 5 million per year. The criterion for the sample of trade enterprises is their turnover and specialisation.

More detailed information is available in the CSB Database. Press release on changes of construction costs in March 2012 will be published on 28 April 2012.

 

Prepared by Producer Price Indices Section
Tatjana Ballode
tel. 67366813