On changes of construction costs in January 2012

02.03.2012

Compared to the December 2011, construction costs in Latvia in January 2012 rose on average by 0.7%, according to the data of the Central Statistical Bureau. The maintenance and operational costs of machinery and equipment increased by 4.3%, and the prices of building materials rose by 0.2%.  In its turn, labour remuneration of workers decreased by 2.5%, and this reduction can be mainly explained by the granted bonuses and additional payments in December.

Growth in construction costs of transport facilities had the most significant increasing impact on the overall level of construction costs.

In comparison with January of the previous year, the construction costs rose by 4.5%. Maintenance and operational costs of machinery and equipment increased by 14.7%, but labour remuneration of workers rose by 7.8%, whereas prices of building materials decreased by 1.3%.

During the year the construction costs were 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 approximately 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 included construction enterprises with the highest value of own account construction works in 2011. The share of enterprises with the work volume of up to LVL 1 million comprised 75%, in 21% of which the volume of own account construction works exceeded LVL 5 million per year.

The criterion for the sample of trade enterprises is their turnover and specialisation.

In January 2012, similarly as in previous years, the weights used for the construction cost calculations were updated and recalculated into the prices of December 2011.

More detailed information is available in the CSB data base. Press release on changes of construction costs in February 2012 will be published on 27 March 2012.

 

Prepared by Producer Price Indices Section
Aļona Ivanova
tel.67366798