The average construction price index fell slightly in 2016, although it increased in the last quarter of the year, driven mainly by increasing labor costs.
According to Statistics Estonia, in 2016 the construction price index fell by 0.8% YoY. Labor costs in the sector increased by 1.2%, the cost of machinery decreased by 1.1%, and the cost of materials by 1.8%.
The index rose by 0.2% from the third to the fourth quarter last year, which is a 0.5% drop compared to the same quarter of 2015.
The index rose by 0.2% in the last quarter, and fell by 0.5% YoY. This was mainly influenced by rising labor costs that contributed more than half of the quarterly change.
Compared to the fourth quarter of 2015, the price index was mainly influenced by the depreciation of building materials, which accounted for more than 75% of the total decrease.
The repair and reconstruction work price index decreased by 0.9% YoY. Labor costs increased by 0.8%, the cost of machines decreased by 1.6%, and the cost of building materials by 2.1%.
The repair and reconstruction work price index in the fourth quarter of 2016 increased by 0.3% QoQ. Year on year, it dropped by 0.4%. (ERR/Business World Magazine)
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