Construction prices increased as a result of wage pressures

According to Statistics Estonia, in the 3rd quarter of 2015, the construction price index increased 0.2% compared to the 2nd quarter of 2015, and 0.6% compared to the 3rd quarter of 2014.

In the 3rd quarter, compared to the same quarter of the previous year, the construction price index was influenced the most by the increasing cost of labor which accounted for over three-quarters of the total increase of the index.

Compared to the previous quarter, labor costs increased 1.7%. Spending  on  machinery  and  construction  materials fell by  0.8% and  0.6%, respectively.

The repair and reconstruction work price index increased by 0.2% in the 3rd quarter of 2015 compared to the 2nd quarter, and fell by 0.1% compared to the 3rd quarter of 2014.

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,

3rd quarter 2015

2nd Q 2015 – 3rd Q 2015, % 3rd Q 2014 – 3rd Q 2015, %
TOTAL 0.2 0.6
labour force 1.7 3.4
building machines -0.8 -2.1
building materials -0.6 -0.7
Index of detached houses 0.2 0.3
Index of blocks of flats -0.4 -0.8
Index of industrial buildings 0.3 1.5
Index of office buildings 0.2 0.7

 

Change in the repair and reconstruction work price index, 3rd quarter 2015
2nd Q 2015 – 3rd Q 2015, % 3rd Q 2014 – 3rd Q 2015, %
TOTAL 0.2 -0.1
labour force 1.7 2.6
building machines -2.0 -4.3
building materials -0.7 1.5

Source: Statistics Estonia

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