Analytics, Construction, Lithuania, Real Estate

International Internet Magazine. Baltic States news & analytics Monday, 22.01.2018, 05:52

In October, construction input prices decreased by 0.3% in Lithuania

Nijolė Grigaravičienė, Statistics Lithuania, 01.12.2017.Print version
Statistics Lithuania informs that in October 2017, compared to September, construction input prices decreased by 0.3%. The greatest influence on the overall price change was made by a 1.4% decrease in wages and salaries, as well as by a 0.2% increase in prices for construction materials and products. Among construction materials and products, an increase in prices was observed for pipes – 0.8%, insulation materials – 0.7%, while general building materials and wood products went down in price by 0.4 and 0.3% respectively.

In October, against September, a decrease in average gross hourly earnings was determined by reduced lump sum premiums, bonuses and benefits.




As for buildings and structures, the largest decrease in prices – 0.5% – was observed for the construction of residential buildings.


Table 1Influence on the overall monthly price change (October 2017, against September) by main construction input component group

Construction input component groups

Price growth, drop (–), %

Influence, percentage points

Materials and products

0.2

+0.149

Overheads

–0.3

–0.012

Operation of machines and mechanisms

–0.3

–0.017

Wages and salaries

–1.4

–0.387


The influence on the overall change in construction input prices is determined not only by change in the construction input component price but also by the relative share (weight) of that component in the total value of construction.


Over the year (October 2017, against October 2016), construction input prices increased by 3%. This was determined by an 8.2% increase in wages and salaries, 1.4% – prices of construction materials and products, 1.1% – hourly labour costs on operation of construction machines and mechanisms.




As for buildings and structures, the largest increase in prices was observed for the construction of residential buildings – 4%. Renovation of buildings went up in price by 4.1%.

 

Table 2. Changes in construction input prices by type of structure, October 2017, %

Types of structures according to CC1

Relative share (weight) of the construction work carried out by type of structure in the total value of new construction

Price growth, drop (–), October 2017,
against

September 2017

2016

December

October

All structures

100.0

–0.3

2.9

3.0

Residential buildings

16.6

–0.5

3.7

4.0

One flat houses

12.9

–0.5

3.7

4.0

Blocks of flats

3.7

–0.4

3.6

3.8

Non-residential buildings

37.9

–0.3

3.7

3.9

    Administrative

7.7

–0.3

3.3

3.5

    Industrial

20.1

–0.3

3.8

4.0

    Trade

10.1

–0.3

3.7

3.9

Civil engineering units

45.5

–0.2

1.9

2.0

    Utility infrastructure (except for wastewater pipelines)

27.3

–0.1

1.7

2.0

    Wastewater pipelines

4.5

–0.4

2.3

2.2

    Roads and streets

13.7

–0.3

2.1

1.9

Renovation of buildings

x

–0.5

4.0

4.1

_______
– the indicator is not calculated in such expression


Table 3. Changes in prices for the main construction input component groups, October 2017, %

Construction input component groups

Relative share (weight)
of construction input
component groups
in the total value of
construction

Price growth, drop (–), October 2017,
against

September 2017

2016

December

October

Total construction costs

100.0

–0.3

2.9

3.0

Materials and products

62.4

0.2

1.3

1.4

Operation of machines and mechanisms

6.6

–0.3

1.0

1.1

Wages and salaries and overheads

31.0

–1.2

6.5

6.9

Wages and salaries

26.2

–1.4

7.8

8.2

Overheads

4.8

–0.3

–0.6

–0.4

_______

1 Classification of types of Construction – CC


A news release on changes in construction input prices in November 2017 is due on 28 December 2017.


For more information, see the Database of Indicators.






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