In October overall level of construction costs has remained the same
Data of Central Statistical Bureau (CSB) show that, compared to September, level of construction costs in Latvia in October 2019 remained the same. Labour remuneration of workers increased by 0.2 %, maintenance and operational costs of machinery and equipment did not change significantly, but prices of building materials reduced by 0.1 %.
In October, the average level of construction costs was mostly affected by an increase in labour remuneration to workers carrying out finishing works (roofers, plasterers, sanitary technicians and others). Prices of building materials related to construction of transport objects had decreasing impact.
Compared to October 2018, construction costs rose by 3.7 %. Labour remuneration of workers increased by 5.9 %, prices of building materials – by 4.0%, and maintenance and operational costs of machinery and equipment – by 1.7 %.
In 2019, the data on prices of construction resources were provided by approximately 200 construction enterprises and more than 50 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 2018. The share of enterprises with the value of own account construction work exceeding EUR 1 million per year accounted for 87 %, in 36 % of which the value of own account construction work exceeded EUR 5 million per year. The criterion for the sample of trade enterprises is their turnover and specialisation.
Information on construction cost changes in November 2019 will be published on 30 December.