Analytics, Construction, Latvia, Markets and Companies, Real Estate, Wages

Compared to November, level of construction costs in Latvia in December 2017 grew by 0.3%. Prices of labour remuneration of workers rose by 1.1%, maintenance and operational costs of machinery and equipment - by 0.2%, but prices of building materials - by 0.1%.

In December, the average level of construction costs was mostly affected by an increase in labour remuneration to workers carrying out finishing works (roofers, plasterers, sanitary technicians and others), as well as to assemblers.

In the 4^th quarter of 2017, as compared to the 3^rd quarter, the overall level of construction costs increased by 0.8%. Labour remuneration of workers rose by 1.6%, maintenance and operational costs of machinery and equipment - by 0.8%, but prices of building materials - by 0.5%.

In the 4^th quarter of 2017, as compared to the 4^th quarter of 2016, the overall level of construction costs increased by 3.0%. Labour remuneration of workers grew by 6.0%, prices of building materials - by 2.4%, but maintenance and operational costs of machinery and equipment - by 2.0%.

The average 12-month level of construction costs of 2017 increased by 1.9% in comparison to the average 12-month level of 2016. Labour remuneration of workers grew by 4.5%, prices of building materials - by 1.4%, but maintenance and operational costs of machinery and equipment - by 1.0%.

In 2017, the data on prices of construction resources were provided by approximately 190 construction enterprises and more than 40 trade enterprises. When calculating the Construction Cost Index, the prices of building materials submitted by enterprises for the calculation of producer price indices in industry and import price index were also used.

The sample included construction enterprises with the highest value of own account construction works in 2016. The share of enterprises with the value of own account construction work exceeding EUR 1 million per year accounted for 72%, in 26% of which the value of own account construction work exceeded EUR 5 million per year. The criterion for the sample of trade enterprises is their turnover and specialisation.

More information on construction costs is available in the Producer Prices section of the CSB database. Information on changes of construction costs in January 2018 will be published on 28 February.

More information on construction cost indices in Latvia is available in the CSB website section Producer Prices – Key Indicators – Metadata.

¹Hourly gross labour remuneration of workers employed in construction broken down by main professions:

-       bricklayers and workers of related professions;
-       concrete workers and workers of related professions;
-       carpenters and builders;
-       workers carrying out finishing works (roofers, plasterers, sanitary technicians and others);
-       painters and workers of related professions;
-       electricians;
-       asphalt layers;
-       auxiliary workers of road building and construction of artificial structures;
-       assemblers;
-       welders.