Changes in construction costs in the 1st quarter of 2008
Compared to the 1st quarter of 2007, construction costs in Latvia in the 1st quarter of 2008 rose on average by 20.7%, according to the data of Central Statistical Bureau. The most rapid rise (by 41.3%) was observed in the labour remuneration of workers. The maintenance and operational costs of machinery and equipment increased by 23.9% and the prices of building materials rose by 3.1%.
Changes of construction costs by main resource groups (compared to corresponding quarter of previous year)
Compared to the 4th quarter of 2007, construction costs in the 1st quarter of this year increased on average by 5.1%. There were increases of 6.4% in the labour remuneration of workers, 2.9% in the maintenance and operational costs of machinery and equipment and 1.6% in the prices of building materials.
Due to the high share of labour remuneration of workers, the most notable increase of construction costs was in the renovation of office buildings (compared to the 1st quarter of 2007 there was a rise of 31.8% and of 5.3% if compared to the previous quarter). But the lowest increase of construction costs, in turn, was recorded in the building of hotels - by 14.0% and by 2.4%, respectively.
Prepared by Producer Price Indices Section