Compared to July, the level of construction costs in Latvia grew by 0.1% in August. Maintenance and operational costs of machinery and equipment rose by 0.4%, labor remuneration of workers decreased by 0.1%, whereas prices of building materials did not change significantly.
Compared to August 2016, construction costs increased by 2.3%. Labor remuneration of workers grew by 4.3%, prices of building materials increased by 2.1%, while maintenance and operational costs of machinery and equipment rose by 1%, according to data from the Central Statistical Bureau of Latvia.
In August, the average level of construction costs was mostly affected by an increase in the maintenance and operational costs of machinery and equipment on excavators and tower cranes.
In 2017, data on prices of construction resources are provided by approximately 190 construction enterprises and more than 40 trade enterprises. When calculating the Construction Cost Index, prices of building materials submitted by enterprises for the calculation of producer price indices in industry and import price index are also used.
The sample includes 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 specialization. (BNN/Business World Magazine)