In October, construction costs fell by 0.1 %
Data of the Central Statistical Bureau (CSB) show that, compared to September, in October 2018 the level of construction costs in Latvia dropped by 0.1 %. Prices of building materials reduced by 0.2 %, labour remuneration of workers by 0.1 %, while maintenance and operational costs of machinery and equipment grew by 0.1 %.
In October, the average level of construction costs was mostly affected by the decline in prices of sand, as well as metal constructions and small metal articles.
Compared to October 2017, construction costs went up by 4.4 %. Labour remuneration of workers increased by 9.1 %, prices of building materials by 3.2 %, and maintenance and operational costs of machinery and equipment by 3.1 %.
In 2018, the data on prices of construction resources are provided by approximately 190 construction enterprises and more than 40 trade enterprises. When calculating the Construction Cost Index, the prices of building materials submitted by enterprises for the calculation of producer price indices in industry and import price index are also used.
The sample includes construction enterprises with the highest value of own account construction works in 2017. The share of enterprises with the value of own account construction work exceeding EUR 1 million per year accounted for 80 %, in 33 % of which the value of own account construction work exceeded EUR 5 million per year. The criterion used to sample trade enterprises is their turnover and specialisation.
Information on construction cost changes in November 2018 will be published on 28 December.
More information on construction cost indices in Latvia is available in the CSB website section Producer Prices – Metadata.