Analytics, Construction, Latvia, Statistics

International Internet Magazine. Baltic States news & analytics Thursday, 09.04.2020, 20:25

Latvia: In January, construction costs decreased by 0.2%

Ļubova Ņemsadze Producer Price Indices Section, 27.02.2020.Print version
Data of the Central Statistical Bureau (CSB) show that, compared to December 2019, in January 2020 the level of construction costs in Latvia fell by 0.2 %. Labour remuneration of workers reduced by 0.9%, prices of building materials – by 0.1%, but maintenance and operational costs of machinery and equipment – rose by 0.2%.

In January, the average level of construction costs was mostly affected by a decrease in labour remuneration to electricians and assemblers, as well as to auxiliary workers of road building and construction of artificial structures.

Compared to January 2019, construction costs rose by 2.8%. Labour remuneration of workers rose by 7.5%, maintenance and operational costs of machinery and equipment – by 1.8%, but prices of building materials – by 1.6%.

As each year, also in January 2020 the weight structure used for the index calculation was revised. In order to ensure compliance of the construction cost index with the current economic situation in Latvia and users’ demands, this year unified construction models used in the index calculations were updated. For executing the task, the CSB involved experienced construction experts, who evaluated the current system of weights and developed new construction models, which characterise the lately used construction technologies and building materials more precisely.

In 2020, the data on prices of construction resources were provided by approximately 200 construction enterprises and more than 50 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 are also used. Additionally, registered consumer prices of building materials are used in calculations.

The sample includes construction enterprises with the highest value of own account construction works in 2019. The share of enterprises with the value of own account construction work exceeding EUR 1 mln per year accounted for 90%, in 36% of which the value of own account construction work exceeded EUR 5 mln per year. The criterion for the sample of trade enterprises is their turnover and specialisation.

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