Construction price index turned upwards

news release no 7

According to Statistics Estonia, the construction price index increased 0.6% in the 4th quarter of 2010 compared to the 4th quarter of 2009 as well as compared to the 3rd quarter of 2010.

A change in the construction price index, compared to the same quarter of the previous year, was positive again for the first time during the last two years. The largest decrease (-10.5%) was recorded in the 3rd quarter of 2009. After that the decrease has decelerated quarter by quarter — in the 4th quarter of 2009 the decrease was 10%, in the 1st quarter of 2010 — 7.1% , in the 2nd quarter — 3.4% and in the 3rd quarter — 0.9%.

In the 4th quarter of 2010 compared to the fourth quarter of 2009, the construction price index was mainly influenced by the 0.6% increase in the prices of building materials. While the proportion of labour force in the construction price index is smaller than the proportion of materials, then the rise in the prices of labour force had a smaller effect on the index, even though the increase was the same i.e. 0.6%.

Compared to the 3rd quarter of 2010, the change in the construction price index was also 0.6%, thereby labour force prices went up 2.2% and the hourly prices of building machines became cheaper by 0.8%.

The repair and reconstruction work price index went up by 0.7% compared to the 3rd quarter of 2010, and by 0.5% compared to the 4th quarter of 2009.

The calculation of 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 construction price 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 2010
  3rd quarter 2010 –
4th quarter 2010, %
4th quarter 2009 –
4th quarter 2010, %
TOTAL 0.6 0.6
labour force 2.2 0.6
building machines -0.8 0.9
building materials 0.1 0.6
Index of detached houses 0.7 0.7
Index of blocks of flats 0.7 0.7
Index of industrial buildings 0.6 0.8
Index of office buildings 0.5 0.4

Change in the repair and reconstruction work price index, 4th quarter 2010
  3rd quarter 2010 –
4th quarter 2010, %
4th quarter 2009 –
4th quarter 2010, %
TOTAL 0.7 0.5
labour force 2.0 1.1
building machines 0.4 2.1
building materials 0.0 0.0

For further information:

Krõõt Ojamaa
Leading Statistician
Price Statistics Service
Statistics Estonia
Tel +372 625 9242

More detailed data have been published in the Statistical Database.