The construction price index continued to fall in 2Q

According to Statistics Estonia, the percentage change of the construction price index in the 2nd quarter of 2014 was –0.7% compared to the 1st quarter of 2014 and 0.8% compared to the 2nd quarter of 2013.

After three years of growth, the construction price index took a downturn in the 1st quarter of 2014 (compared to the previous quarter). This downtrend continued in the 2nd quarter.

In the 2nd quarter, compared to the same quarter of the previous year, the construction price index was primarily influenced by rising labour costs, which accounted for more than three quarters of the total increase of the index.

Compared to the previous quarter, costs of building materials decreased by 1.7%, while the costs of building machines increased by 3.0% and labour costs rose by 0.7%.

In the 2nd quarter of 2014, the percentage change of the repair and reconstruction work price index was –0.6% compared to the 1st quarter of 2014 and 0.7% compared to the 2nd quarter of 2013.

The calculation of the construction price index covers four groups of buildings: detached houses, blocks of flats, industrial buildings and office buildings. The repair and reconstruction work price index covers office buildings. The construction price index expresses the change in the expenditures on construction taking into consideration the price changes of three basic inputs: labour force, building materials and building machines.

Change in the construction price index, 2nd quarter 2014
1st quarter 2014 –
2nd quarter 2014, %
2nd quarter 2013 –
2nd quarter 2014, %
TOTAL -0.7 0.8
labour force 0.7 2.5
building machines 3.0 3.5
building materials -1.7 -0.4
Index of detached houses -0.5 0.2
Index of blocks of flats -1.0 0.6
Index of industrial buildings -0.2 1.2
Index of office buildings -0.9 0.8
Change in the repair and reconstruction work price index, 2nd quarter 2014
1st quarter 2014 –
2nd quarter 2014, %
2nd quarter 2013 –
2nd quarter 2014, %
TOTAL -0.6 0.7
labour force 0.6 2.5
building machines 2.3 5.2
building materials -1.5 -0.5

 

Source: Statistics Estonia

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: