Construction costs in July reduced by 0.6%

27.08.2014

Compared to June, level of construction costs in Latvia in July 2014 decreased by 0.6%.  Prices of building materials decreased by 0.8%, labour remuneration of workers – by 0.5% and maintenance and operational costs of machinery and equipment – by 0.2%. The average level of construction costs was mostly affected by price drop of building materials of transport facilities. However decrease of labour remuneration of workers was impacted by reduction of work volume in transport facilities.

Compared to July of the previous year, average level of construction costs reduced by 0.1%. Prices of building materials decreased by 0.7%, but labour remuneration of workers – by 1.6% and maintenance and operational costs of machinery and equipment – by 0.2%.

 

Construction cost indices

(2010=100)

Data source: Central Statistical Bureau of Latvia

In 2014 data on the prices of construction resources are provided by about 180 construction enterprises and 30 trade enterprises. Moreover, construction cost index calculations are also 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 2013. The share of enterprises with the value of own account construction work exceeding EUR 1.4 million (LVL 1.0 million) per year comprised 64%, in 20% of which the value of own account construction work exceeded EUR 7 million (LVL 5.0 million) per year. The criterion for the sample of trade enterprises is their turnover and specialisation.

 

More information on construction costs is available in the Producer prices. Press release on changes of construction costs in August 2014 will be published on 25 September.

 

More information:
Producer Price Indices Section
Lolita Grase
tel. +371 67366678