On changes of construction costs in August 2011
Compared to July, construction costs in August 2011 decreased on average by 0.1%, according to the data of the Central Statistical Bureau. Labour remuneration of workers decreased by 0.5%, whereas prices of building materials diminished by 0.3%. The decrease in labour remuneration was mostly observed in the construction of transport facilities, which can be explained with drop in work volume. Maintenance and operational costs of machinery and equipment increased by 0.7%.
Decrease in costs for reconstruction and construction of industrial, agricultural and trade buildings had the greatest lowering impact on the overall level of construction costs.
In comparison to August of the previous year, the overall level of construction costs has grown by 1.9%. Maintenance and operational costs of machinery and equipment have increased by 14.2%. In its turn prices of building materials diminished by 2.0% and labour remuneration of workers decreased by 1.8%.
During the year the overall level of construction costs was mostly influenced by the cost growth in the construction of underground main pipelines.
|Changes of construction costs by main resource group compared to the corresponding month of the previous year|
|Changes of construction costs by type of construction
compared to the corresponding month of the previous year, %
In 2011 the price data on construction resources are obtained from more than 150 construction enterprises and 30 trade enterprises. Construction enterprises provide price data for all resources, including remuneration of workers employed in the construction, while trade enterprises indicate only the prices of building materials. The sample includes construction enterprises with the highest value of own account construction works in 2010. The share of enterprises with the work volume of up to LVL 1 million comprises 38%, while for 62% of enterprises the volume of own account construction works exceeds LVL 1 million per year.
The criterion for the sample of trade enterprises is their turnover and specialisation.
Press release on changes of construction costs in September 2011 will be published on 28 October 2011.
Prepared by Producer Price Indices Section