On changes of construction costs in 2011
Compared to the average level of 2010, construction costs in Latvia in 2011 increased on average by 2.1%, according to the data of the Central Statistical Bureau. The most notable growth among the main resource groups was registered for maintenance and operational costs of machinery and equipment (of 10.2%). In its turn, labour remuneration of workers decreased by 1.0% and prices of building materials diminished by 0.3%.
Compared to November, construction costs in December 2011 grew on average by 2.3%. Labour remuneration of workers increased by 6.1%, maintenance and operational costs of machinery and equipment rose by 1.4% and prices of building materials grew by 1.2%. The growth in labour remuneration of workers can be mainly explained by the granted bonuses and additional payments at the end of the year.
Growth in construction costs of transport facilities had the most significant increasing impact on the overall level of construction costs.
Compared to December of the previous year, the overall level of construction costs rose by 4.9%. Maintenance and operational costs of machinery and equipment increased by 13.2% and labour remuneration of workers rose by 10.5%; whereas prices of building materials decreased by 0.8%.
During the year the overall level of construction costs was mostly influenced by the cost growth in the construction of underground main pipelines and transport facilities.
|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 4th quarter of 2010, construction costs in the 4th quarter of 2011 rose on average by 4.3%. Maintenance and operational costs of machinery and equipment increased by 13.9% and labour remuneration of workers rose by 5.9%. Prices of building materials diminished by 0.5%.
In 2011 the price data on construction resources were obtained from more than 150 construction enterprises and 30 trade enterprises. Construction enterprises provided price data for all resources, including remuneration of workers employed in the construction, while trade enterprises indicated only the prices of building materials. The sample included 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 comprised 38%, while in 62% of enterprises the volume of own account construction works exceeded LVL 1 million per year.
The criterion for the sample of trade enterprises is their turnover and specialisation.
Prepared by Producer Price Indices Section