In December 2015, producer costs for construction decreased slightly again (−0,1%)Costs of production indices in construction - December 2015

In December 2015, producer costs in construction decreased slightly again (-0.1%) as in November. They have been declining since July 2015. In December, costs slipped in civil engineering (-0.7%), were virtually stable in construction of buildings (+0.1%) and were stable in specialised construction activities.

In December 2015, producer costs in construction decreased slightly again (−0.1%) as in November. They have been declining since July 2015. In December, costs slipped in civil engineering (−0.7%), were virtually stable in construction of buildings (+0.1%) and were stable in specialised construction activities.

Over a year, producer costs in construction continued to decline (−1.0% after −1.9%), mainly in civil engineering (−4.1%). Costs decreased more moderately in construction of buildings (−0.5%) and in specialised construction activities (−0.2%).

tablo1 – Variations in producer cost indices for construction

In %
Variations in producer cost indices for construction
NAF Heading Weights (in %) Dec. 15/ Nov. 15 Dec. 15 / Dec. 14
F Construction 100.0 -0.1 -1.0
41.2 Construction of buildings 10.1 +0.1 -0.5
42 Civil engineering 16.2 -0.7 -4.1
43 Specialised construction works 73.7 0.0 -0.2
43BT Buildings 64.2 +0.2 +0.2
43BTC New buildings 24.6 -0.1 -0.5
43BTR Existing buildings 39.6 +0.3 +0.6
43TP Specialised works for civil engineering 9.5 -0.6 -2.8
BT Buildings (41.2 + 43BT) 74.3 +0.1 0.0
TP Public works (42 + 43TP) 25.7 -0.6 -3.5
  • Source: INSEE

tablo2 – Items of producer cost indices for construction

In %
Items of producer cost indices for construction
Costs items Q4 15 / Q3 15 Dec. 15/ Nov. 15 Dec. 15 / Dec. 14
Equipment Buildings +2.5 -1.2 +2.5
Public works -0.7 -0.3 -0.3
Labour Labour costs in construction +1.9 /// +1.5
Energy Buildings -4.2 -2.5 -9.2
Public works -5.5 -6.6 -11.0
Materials Construction of buildings -1.5 -0.8 -3.3
Existing buildings -0.8 -0.4 -2.1
Civil engineering -4.9 -1.6 -11.0
Specialised works for civil engineering -1.0 -0.6 -1.7
Services Construction -0.9 +0.8 +0.5
Transport Buildings -0.7 -0.5 -2.1
Public works +1.0 0.0 +0.1
  • Source: INSEE

GRCoutUK – Production costs in construction

  • Source: INSEE

Material costs declined again

In December 2015, material costs decreased sharply in civil engineering (−1.6%); over a year, they fell by 11%. Materials were also cheaper in construction of buildings (−0.8%), in specialised works for civil engineering (−0.6%) and in renovation of existing buildings (−0.4%). The drop in prices of casting of iron (−5.3%), of bitumen (−4.3% after −2.9%) and of cement (−1.1%) explained most of the fall of materials costs.

GRMUK – Materials costs

  • Source: INSEE

Equipment cost fell back

In December 2015, equipment costs fell back in construction of buildings (−1.2%) and in public works (−0.3%) erasing the increase of the previous month.

GRKUK – Equipment cost

  • Source: INSEE

GRtravailUK – Labour cost in construction

  • Source: INSEE

Energy cost diminished further

In December 2015, the cost of energy declined markedly in public works (−6.6%) and in building construction (−2.5%), reflecting the drop in prices of heavy fuel (−22.3%) and of diesel fuel (−2.5%). Energy costs remained much lower than a year ago in public works (−11.0%) as in building construction (−9.2%).

GRenergie – Energy cost

  • Source: INSEE

revision – Revisions of variations in the costs of production indices in construction

In points
Revisions of variations in the costs of production indices in construction
Sept. 15 Oct. 15 Nov. 15
F Construction /// 0.3 0.3
41.2 Construction of buildings 0.1 0.2 0.3
42 Civil engineering 0.1 0.1 0.2
43 Specialised construction works /// 0.4 0.4
  • How to read it: producer cost for construction in October 2015 published in January 2016 has been updated from −0.1% to +0.2%, that is to say an upward revision by 0.3 points, taking into account the latest values of the labour cost index.
  • Source: INSEE