Construction price index is showing the signs of growth

The construction price index decreased for the seventh quarter in succession, though the decrease has slowed down. The construction price index started to decrease at the beginning of 2009 compared to the same quarter of the previous year, this year, the decrease has decelerated quarter by quarter — in the 1st quarter of 2010 the decline was 7.1%, in the 2nd quarter 3.4%.

Compared to the previous quarter, the construction price index increased last in the 3rd quarter of 2008. After that the construction price index decreased for seven quarters in succession until the increase in the 3rd quarter.

Construction Price Index, 1st quarter 2008 – 3rd quarter 2010

In the 3rd quarter of 2010 compared to the 3rd quarter of 2009, the construction price index was mainly influenced by the 3.3% decrease in labour costs. The sole prices that have grown are the hourly prices of building machines compared to the same quarter of the previous year. The prices of building materials have remained on the same level as in the same quarter of the previous year.

Compared to the 2nd quarter of 2010, the prices of labour force, building machines as well as building materials increased.

The repair and reconstruction work price index also went up by 1.1% compared to the 2nd quarter of 2010 and fell by 1.2% compared to the 3rd quarter of 2009.

The calculation of the construction price index covers four groups of buildings — detached houses, blocks of flats, industrial buildings and office buildings as well as office buildings covered by the repair and reconstruction work price index. The index expresses the change in the expenditures on construction taking into consideration the price changes of basic inputs (labour force, building materials and building machines).