Construction price index fell also in the 4th quarter

news release no 9

According to Statistics Estonia, in the 4th quarter of 2009 the construction price index fell 10.0% compared to the 4th quarter of 2008. In 2009, the index fell 8.5% compared to the average of 2008.

The construction price index fell in each quarter of 2009 compared to the corresponding quarter of the previous year and for that reason the average index of the year was also in the falling trend. Since 1995, the annual average construction price index fell for the first time compared to the average of the previous year.

The fall of the construction price index in the 4th quarter was mainly influenced by the decrease in the labour costs by 17.6%. The price indices of building machines and building materials were also in the falling trend. The fall of the annual average index was also mainly influenced by the decrease in the labour costs.

Compared to the 3rd quarter of 2009, the change of the construction price index was -0.9%, mainly influenced by the decrease in the labour costs.

In the 4th quarter of 2009 the percentage change in the repair and reconstruction work price index was -1.1% compared to the 3rd quarter of 2009 and -9.4% compared to the 4th quarter of 2008. In 2009, the change of the index was -8.1% compared to the average of 2008.

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).

Change in the construction price index, 4th quarter 2009 and 2009
  3rd quarter 2009 –
4th quarter 2009, %
4th quarter 2008 –
4th quarter 2009, %
2008–2009, %
TOTAL -0.9 -10.0 -8.5
labour force -1.8 -17.6 -15.9
building machines -0.7 -4.7 -3.8
building materials -0.6 -7.0 -5.5
Index of detached houses -0.8 -9.3 -8.2
Index of blocks of flats 0.9 -9.9 -8.5
Index of industrial buildings -0.9 -9.8 -8.1
Index of office buildings -0.9 -10.3 -8.8

Change in the repair and reconstruction work price index, 4th quarter 2009 and 2009
  3rd quarter 2009 –
4th quarter 2009, %
4th quarter 2008 –
4th quarter 2009, %
2008–2009, %
TOTAL -1.1 -9.4 -8.1
labour force -1.9 -17.4 -15.7
building machines -0.3 -0.3 -0.7
building materials -0.7 -5.7 -4.3

For further information:

Hede Hannula
Leading Statistician
Price Statistics Service
Statistics Estonia
Tel +372 625 9242

More detailed data have been published in the Statistical Database.