Construction costs up 4.4% in June in Latvia

Compared to May, construction costs increased by 0.5% in June, according to the data from the Central Statistical Bureau (CSP).

Workers wages grew by 1.2%, the prices of building materials – by 0.3%, whereas maintenance and operational costs of machinery and equipment – by 0.3%. In June, the average level of construction costs was mainly influenced by the rise in wages and salaries of auxiliary road construction workers and artificial structure assemblers. 

Compared to June 2018, construction costs increased by 4.4%. Workers wages increased by 8.8%, prices of building materials – 3.3%, whereas maintenance and operational costs of machinery and equipment – by 3.1% 

CSP data shows that in the 2ndquarter of 2019, compared to the 1stquarter, the overall level of construction costs grew by 1.1 %. Workers wages increased by 3.1%, prices of materials – by 0.6%, whereas maintenance and operational costs of machinery and equipment – by 0.4%. 

In the 2ndquarter of 2019, compared to the 2ndquarter of 2018, the overall level of construction costs increased by 4.3 %. Workers wages increased by 8.4%, prices of materials – by 3.3%, whereas maintenance and operational costs of machinery and equipment – by 3.1%.

In 2019, the data on prices of construction resources were provided by around 200 construction companies and more than 50 trade companies. When calculating the Construction Cost Index, the prices of building materials submitted by companies for the calculation of producer price indices in industry and import price index are also used. 

The price survey sample includes construction companies with the highest value of own-account construction works in 2018. The share of surveyed companies 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 companies is their turnover and specialisation.

Economy
Economy