Construction costs in the 1st quarter of 2006
Compared with the 1st quarter of 2005, construction costs in Latvia in the 1st quarter of 2006 rose on average by 13.0%, according to the Central Statistical Bureau. The most rapid rise (by 31.5%) could be seen in the labour remuneration of workers. The maintenance and operational costs of machinery and equipment increased by 13.3% and the prices of construction materials rose by 5.6%. The most notable increases in construction costs were 20.3% in the renovation of office buildings and 17.7% in the construction of underground main pipelines. There were increases of 14.7% in the construction costs of transport facilities, 14.4% in the reconstruction and construction of industrial, agricultural and trade buildings and 10.3% in the construction of residential buildings. By contrast, construction costs in the renovation of education and healthcare buildings decreased by 2.0%.
Compared with the 4th quarter of 2005, construction costs in the 1st quarter of 2006 increased on average by 2.1%. The increases were 5.0% in the maintenance and operational costs of machinery and equipment and 2.4% in the prices of construction materials. Over the same period labour remuneration of workers has decreased slightly, by 0.3%. The highest cost increases were 3.3% in the construction of underground main pipelines, 3.1% in the construction and reconstruction of industrial, agricultural and trade buildings and 3.0% in the construction of transport facilities. There were the following increases in the construction costs: 2.2% in the construction of residential buildings and 0.1% in the renovation of office buildings. A decrease in the construction costs could be observed in the renovation of educational and healthcare buildings (by 0.2%).
As in previous years, the weights for the calculation of construction costs indices were updated in the 1st quarter of 2006. The value of own account construction last year is used as the weights, with the average prices of 2005 serving as the basis for price comparisons.
Prepared by the Producer Price Indices Section
Department of Price Statistics