In May 2016, producer costs for construction continued to rise moderately (+0.4%)Costs of production indices in construction - May 2016

In May 2016, producer costs in construction continued to rise moderately (+0.4% after +0.1% in April). Costs rose for all kinds of works, however more in civil engineering (+0.7%) than in construction of buildings and in specialised construction works.

In May 2016, producer costs in construction continued to rise moderately (+0.4% after +0.1% in April). Costs rose for all kinds of works, however more in civil engineering (+0.7%) than in construction of buildings and in specialised construction works.

Over a year, the fall in producer costs in construction eased (−0.2% after −0.4% in April and –0.5%% in March). The drop is mostly marked in civil engineering (-3.3%). The costs fell a little in construction of buildings (−0.2%) while they increased in specialised construction works (+0.5%).

tablo1 – Variations in producer cost indices for construction

In %
Variations in producer cost indices for construction
NAF Heading Weights (in %) May 16/ April 16 May 16 / May 15
F Construction 100.0 +0.4 -0.2
41.2 Construction of buildings 10.1 +0.3 -0.2
42 Civil engineering 16.2 +0.7 -3.3
43 Specialised construction works 73.7 +0.3 +0.5
43BT Buildings 64.2 +0.2 +0.8
43BTC New buildings 24.6 +0.3 0.0
43BTR Existing buildings 39.6 +0.2 +1.3
43TP Specialised works for civil engineering 9.5 +0.6 -2.0
BT Buildings (41.2 + 43BT) 74.3 +0.3 +0.7
TP Public works (42 + 43TP) 25.7 +0.7 -2.8
  • Source: INSEE

tablo2 – Items of producer cost indices for construction

In %
Items of producer cost indices for construction
Costs items Q1 16 / Q4 15 May 16/ April 16 May 16 / May 15
Equipment Buildings -1.4 0.0 +2.2
Public works 0.0 +0.1 +0.4
Labour Labour costs in construction +1.5 /// ///
Energy Buildings -5.4 +4.6 -9.9
Public works -4.8 +3.9 -13.7
Materials Construction of buildings -1.8 +0.6 -3.9
Existing buildings -0.9 +0.4 -1.8
Civil engineering -5.0 +1.5 -9.8
Specialised works for civil engineering -0.5 -0.1 -2.1
Services Construction 0.0 -0.1 +0.2
Transport Buildings -0.9 +0.9 -2.0
Public works -1.6 0.0 -1.0
  • ///: non published estimation
  • Source: INSEE

GRCoutUK – Production costs in construction

  • Source: INSEE

Material costs recovered in construction of buildings and further increased in civil engineering

In May 2016, material costs recovered in construction of buildings (+0.6%) after an uninterrupted decrease since June 2015. Over a year, however, they fell down by 3.9%. In civil engineering, the increase initiated in April gathered pace (+1.5% after +0.6%) due to the ongoing rise in prices of bitumen (+8.0%).

On the other hand, material costs decreased very slightly in specialised works for civil engineering (−0.1% after +0.3%) reflecting the drop in prices of electric lighting equipment (−1.9%) that offset a further increase in prices of ribbed bars (+4.0%).

GRMUK – Materials costs

  • Source: INSEE

Equipment costs were virtually stable

In May 2016, equipment costs were virtually stable in public works (+0.1% after −0.3%) and stable in building construction (0.0% after −0.1%).

GRKUK – Equipment cost

  • Source: INSEE

GRtravailUK – Labour cost in construction

  • Source: INSEE

Energy costs accelerated

In May 2016, the costs of energy in building construction increased more sharply (+4.6%) than in the previous month (+0,8%), due to a new rise in prices of road diesel fuel.

In public works, these costs recovered (+3.9% after −0.7 %), because the prices of petroleum products continued to increase while the prices of electricity fell less than in April.

GRenergieUK – Energy cost

  • Source: INSEE

revision – Measure of variations' revisions

(in percentage points)
Measure of variations' revisions
Feb. 16 Mar. 16 Apr. 16
F Construction /// /// ///
41.2 Construction of buildings /// /// ///
42 Civil engineering /// +0.1 –0.1
43 Specialised construction works /// /// ///
  • ///: unchanged
  • How to read it: producer cost variation for civil engineering in April 2016 published in July 2016 has been updated from +0.3% to +0.2%, that is to say a downward revision by 0.1 points.
  • Source: INSEE