In February, construction costs remained at the same level
Data of the, the Central Statistical Bureau (CSB) on the last month before declaration of emergency situation show that, compared to January, in February 2020 the level of construction costs in Latvia remained at the same level. Labour remuneration of workers grew by 0.9 %, prices of building materials – decreased by 0.4 %, but maintenance and operational costs of machinery and equipment – by 0.2 %.
In February, the average level of construction costs was mostly affected by an increase in labour remuneration to electricians and assemblers, as well as to auxiliary workers of road building and construction of artificial structures. Prices of building materials related to construction of transport objects had decreasing impact.
Compared to February 2019, construction costs rose by 2.4 %. Labour remuneration of workers rose by 8.5 %, maintenance and operational costs of machinery and equipment – by 0.9 %, but prices of building materials – by 0.7 %.
In 2020, 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. Additionally, registered consumer prices of building materials are used in calculations.
The sample includes construction enterprises with the highest value of own account construction works in 2019. The share of enterprises with the value of own account construction work exceeding EUR 1 million per year accounted for 90 %, 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 changes of construction costs in March 2020 will be published on 29 April.