On changes of construction costs in October 2012

27.11.2012

Compared to September, construction costs in Latvia in October 2012 decreased on average by 0.5%, according to the data of the Central Statistical Bureau. It was mostly influenced by the drop of 2.3% in the labour remuneration of workers due to the decrease in construction volume of roads and bridges. Maintenance and operational costs of machinery and equipment rose by 0.2%. Prices of building materials overall did not change.

As compared to October of the previous yearconstruction costs increased by 5.9%.Labour remuneration of workers grew by 16.3%, while maintenance and operational costs of machinery and equipment rose by 11.3%. Prices of building materials dropped by 1.0%.

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, %

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 of construction costs in November 2012 will be published on 28 December 2012.

 

 

Prepared by Producer Price Indices Section
Tatjana Ballode
tel.67366813