The construction price index started to decline in the second quarter
According to Statistics Estonia, in the 2nd quarter of 2016, the construction price index changed by -0.6% compared to the first quarter of 2016 and by -1.3% compared to the second quarter of 2015.
In the 2nd quarter of 2016 compared to the same quarter of the previous year, the construction price index was influenced by the decrease in the cost of building materials, which provided over three-quarters of the total decrease of the index.
Compared to the previous quarter, prices of building materials fell by 0.9% in the 2nd quarter of 2016. The costs of building machines fell by 0.7% and labour force costs by 0.2%.
The repair and reconstruction work price index changed by -1.1% in the 2nd quarter of 2016 compared to the 1st quarter and by -1.6% compared to the 2nd quarter of 2015.
The calculation of the construction price index covers four groups of buildings: detached houses, blocks of flats, industrial buildings and office buildings. The repair and reconstruction work price index covers office buildings. The construction price index expresses the change in the expenditures on construction taking into consideration the price changes of three basic inputs: labour force, building materials and building machines.
| 1st quarter 2016 – 2nd quarter 2016, % | 2nd quarter 2015 – 2nd quarter 2016, % | |
|---|---|---|
| TOTAL | -0.6 | -1.3 |
| labour force | -0.2 | 2.1 |
| building machines | -0.7 | -1.8 |
| building materials | -0.9 | -3.0 |
| Index of detached houses | -0.9 | -0.9 |
| Index of blocks of flats | 0.1 | -1.0 |
| Index of industrial buildings | - 1.4 | -1.9 |
| Index of office buildings | -0.5 | -1.2 |
| 1st quarter 2016 – 2nd quarter 2016, % | 2nd quarter 2015 – 2nd quarter 2016, % | |
|---|---|---|
| TOTAL | -1.1 | -1.6 |
| labour force | 0.0 | 1.8 |
| building machines | 0.6 | -2.4 |
| building materials | -2.0 | - 3.8 |