The construction price index fell in 2016

According to Statistics Estonia, in 2016, the construction price index fell 0.8% compared with the average of 2015.

Compared to 2015, labour costs increased by 1.2%, the cost of machines decreased by 1.1% and the cost of materials decreased by 1.8%.

In the 4th quarter of 2016 compared to the 3rd quarter, the change of the construction price index was 0.2%, and compared to the 4th quarter of 2015 the change was -0.5%. Compared to the 3rd quarter of 2016, the index was mainly influenced by an increase in labour costs, which contributed more than half of the quarterly change. Compared to the 4th quarter of 2015, the construction price index was mainly influenced by the depreciation of building materials, which accounted for more than 75% of the total decrease.

The repair and reconstruction work price index decreased by 0.9% in 2016 compared to the average of 2015. Labour costs increased by 0.8%, the cost of machines decreased by 1.6% and the cost of building materials decreased by 2.1%.

The change of the repair and reconstruction work price index in the 4th quarter of 2016 was 0.3% compared to the 3rd quarter and -0.4% compared to the 4th quarter of 2015.

The calculation of the construction price index covers four groups of buildings: detached houses, apartment buildings, industrial buildings and office buildings. The repair and reconstruction work price index covers office buildings. The construction price index expresses the change in the cost of construction at the level of direct costs at a construction site. The resources taken into account in direct costs are divided into three main groups: labour force, building machines and building materials.

Change in the construction price index, 4th quarter 2016
3rd quarter 2016 – 4th quarter 2016, % 4th quarter 2015 – 4th quarter 2016, %
TOTAL 0.2 -0.5
labour force 0.3 0.3
building machines 0.4 0.0
building materials 0.1 -1.0
Index of detached houses 0.2 -0.1
Index of apartment buildings 0.2 -0.2
Index of industrial buildings 0.2 -0.5
Index of office buildings 0.1 -0.6
Change in the repair and reconstruction work price index, 4th quarter 2016
3rd quarter 2016 – 4th quarter 2016, % 4th quarter 2015 – 4th quarter 2016, %
TOTAL 0.3 -0.4
labour force 0.3 0.2
building machines 0.1 0.1
building materials 0.3 -0.9

For the statistical activity “Construction price index”, the main representative of public interest is the Ministry of Economic Affairs and Communications, commissioned by whom Statistics Estonia collects and analyses the data necessary for conducting this statistical activity.

Source: Statistics Estonia

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