Compared to December 2017, the level of construction costs in Latvia increased by 5.6% in December 2018. Labor remuneration of workers grew by 8.7%, and prices of building materials – by 5.8%, but maintenance and operational costs of machinery and equipment – by 3.1%.
Compared to November 2018, level of construction costs in Latvia in December 2018 grew by 0.7%. Labor remuneration of workers grew by 1.1%, and prices of building materials – by 0.8%, but maintenance and operational costs of machinery and equipment – by 0.1%, according to data from the Central Statistical Bureau of Latvia.
In December 2018, the average level of construction costs was mostly affected by an increase in labor remuneration to assemblers, as well as to workers carrying out finishing works (roofers, plasterers, sanitary technicians and others).
In Q4 2018, as compared to the third quarter, the overall level of construction costs increased by 1.2%. Prices of building materials increased by 1.4%, labor remuneration of workers – by 1.3%, but maintenance and operational costs of machinery and equipment grew by 0.7%.
In Q4 2018, as compared to Q4 2017, the overall level of construction costs increased by 5.1%. Labor remuneration of workers grew by 8.8%, and prices of building materials – by 4.7%, but maintenance and operational costs of machinery and equipment – by 3.2%.
The average 12-month level of construction costs of 2018 increased by 4.4% in comparison to the average 12-month level of 2017. Labor remuneration of workers grew by 8.3%, prices of building materials – by 3.7%, but maintenance and operational costs of machinery and equipment – by 2.8%.
In 2018, 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 are also used
The sample includes construction enterprises with the highest value of own account construction works in 2017. The share of enterprises with the value of own account construction work exceeding EUR 1 million per year accounted for 80%, in 33% 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)