On changes of construction costs in June 2012

26.07.2012

Compared to May, construction costs in Latvia in June 2012 increased on average by 0.4%, according to the data of the Central Statistical Bureau. Labour remuneration of workers increased by 1.5%, maintenance and operational costs of machinery and equipment grew by 0.2%, and prices of building materials rose by 0.1%.

The overall level of construction costs was mostly influenced by the cost growth in the construction of transport facilities.

As compared to June of the previous year, the overall level of construction costs rose by 7.3%.Labour remuneration of workers increased by 18.8%, maintenance and operational costs of machinery and equipment grew by 13.2% and prices of building materials rose by 0.2%.

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

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, %

Compared to the 2nd quarter of 2011, construction costs in the 2nd quarter of 2012 rose on average by 7.0%.Labour remuneration of workers increased by 17.7%, maintenance and operational costs of machinery and equipment grew by 13.5% and prices of building materials rose by 0.1%.

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 exceeded 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 in construction costs in July 2012 will be published on 27 August 2012.

Prepared by Producer Price Indices Section
Tatjana Ballode
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