In January, construction costs dropped by 0.2 %
Data of the Central Statistical Bureau (CSB) show that, compared to December 2018, in January 2019 the level of construction costs in Latvia reduced by 0.2 %. Prices of building materials decreased by 0.5 %, while labour remuneration of workers and maintenance and operational costs of machinery and equipment grew by 0.1 %.
In January, the average level of construction costs was mainly influenced by the decline in prices of building materials – mainly steel constructions and small metal products.
Compared to January 2018, construction costs went up by 5.0 %. Labour remuneration of workers grew by 9.2 %, prices of building materials by 4.4 %, and maintenance and operational costs of machinery and equipment by 3.2 %.
In 2019, the data on prices of construction resources are 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 used to sample trade enterprises is their turnover and specialisation.
Information on construction cost changes in February 2019 will be published on 27 March.
More information on Latvian construction cost indices is available in the CSB website section Producer Prices – Metadata.