The average construction price index fell slightly in 2016, although it increased in the last quarter of the year, driven mainly by increasing labor costs.
According to Statistics Estonia, in 2016 the construction price index fell by 0.8 percent compared to the average of the previous year. Labor costs in the sector increased by 1.2 percent, the cost of machinery decreased by 1.1 percent, and the cost of materials by 1.8 percent.
The index rose by 0.2 percent from the third to the fourth quarter last year, which is a 0.5 percent drop compared to the same quarter of 2015.
The index rose by 0.2 percent in the last quarter, and fell by 0.5 percent year on year. This was mainly influenced by rising labor costs that contributed more than half of the quarterly change.
Compared to the fourth quarter of 2015, the price index was mainly influenced by the depreciation of building materials, which accounted for more than 75 percent of the total decrease.
The repair and reconstruction work price index decreased by 0.9 percent in 2016 compared to the average of 2015. Labor costs increased by 0.8 percent, the cost of machines decreased by 1.6, and the cost of building materials by 2.1 percent.
The repair and reconstruction work price index in the fourth quarter of 2016 increased by 0.3 percent compared to the third. Year on year, it dropped by 0.4 percent.
Editor: Editor: Dario Cavegn