Compared to February, the level of construction costs in Latvia grew by 0.1% in March.
Prices of building materials increased by 0.5%, but labor remuneration of workers, as well as maintenance and operational costs of machinery and equipment – reduced by 0.4%, according to the latest data from the Central Statistical Bureau of Latvia.
In March, the average level of construction costs was mostly affected by an increase of road construction materials – of sand, as well as of metal structures and small metal products.
Compared to March 2019, construction costs rose by 2.2%. Labor remuneration of workers grew by 7.7%, prices of building materials – by 1.1%, while maintenance and operational costs of machinery and equipment – increased by 0.4%.
In Q1, compared to the fourth quarter of 2019, the overall level of construction costs rose by 0.3%. Labor remuneration of workers grew by 1.2%, maintenance and operational costs of machinery and equipment – by 0.1%, but prices of building materials didn’t change significantly.
In Q1, compared to Q1 2019, the overall level of construction costs rose by 2.5%. Labor remuneration of workers grew by 7.9%, prices of building materials – by 1.1% and maintenance and operational costs of machinery and equipment – by 1%.
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 million per year accounted for 90%, in 36% 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.
Information on changes of construction costs in April will be published on May 29.
Report on prices of construction resources for March was submitted by 97.6% enterprises; the number and quality of the data submitted does not differ significantly from previous periods. Overall index of construction costs in March corresponds to statistical principles and general quality criteria. (BNN/Business World Magazine)