In June 2016, producer costs for construction accelerated (+0.5%)Costs of production indices in construction - June 2016

In June 2016, producer costs in construction accelerated (+0.5% after +0.1% in May). Costs rose for all kinds of works, however more in civil engineering (+1.0%) than in construction of buildings (+0.3%) and in specialised construction works (+0.5%).

In June 2016, producer costs in construction accelerated (+0.5% after +0.1% in May). Costs rose for all kinds of works, however more in civil engineering (+1.0%) than in construction of buildings (+0.3%) and in specialised construction works (+0.5%).

Over a year, producer costs in construction were virtually stable (−0.1 %) after a continuous decline since August 2014 (including −0.6% in May 2016). They accelerated in construction of buildings (+0.1% after −0.4% in May) and they increased in specialised construction works (+0.5% after 0.0%). They remained, though, considerably down in civil engineering (−2.7% after −3.5%).

tablo1 – Variations in producer cost indices for construction

In %
Variations in producer cost indices for construction
NAF Heading Weights (in %) June 16/ May 16 June 16 / June 15
F Construction 100.0 +0.5 -0.1
41.2 Construction of buildings 10.1 +0.3 +0.1
42 Civil engineering 16.2 +1.0 -2.7
43 Specialised construction works 73.7 +0.5 +0.5
43BT Buildings 64.2 +0.4 +0.8
43BTC New buildings 24.6 +0.5 +0.2
43BTR Existing buildings 39.6 +0.3 +1.1
43TP Specialised works for civil engineering 9.5 +0.7 -1.6
BT Buildings (41.2 + 43BT) 74.3 +0.4 +0.8
TP Public works (42 + 43TP) 25.7 +0.9 -2.3
  • Source: INSEE

tablo2 – Items of producer cost indices for construction

In %
Items of producer cost indices for construction
Costs items Q2 16 / Q1 16 June 16/ May 16 June 16 / June 15
Equipment Buildings -0.3 +2.5 +2.5
Public works 0.0 0.0 +0.5
Labour Labour costs in construction -0.5 /// ///
Energy Buildings +7.5 +4.7 -4.4
Public works +6.0 +3.5 -9.0
Materials Construction of buildings +0.3 +0.7 -2.6
Existing buildings +0.1 +0.7 -1.1
Civil engineering +2.0 +2.8 -8.1
Specialised works for civil engineering -0.2 +0.2 -1.6
Services Construction +0.4 +0.4 +0.1
Transport Buildings +1.5 +1.0 -0.7
Public works +0.4 0.0 -0.5
  • ///: non published estimation
  • Source: INSEE

GRCoutUK – Production costs in construction

  • Source: INSEE

Material costs rose for all kinds of works

In June 2016, material costs rose again in construction of buildings (+0.7% after +0.8 % in May). Over a year, however, they fell down by 2.6%. In civil engineering, they accelerated month-on-month (+2.8% after +1.2%) due to the sharp increase in prices of bitumen. However, they remained much lower than a year before (−8.1%).

In specialised works for civil engineering, the costs of materials increased slightly (+0.2% after +0.1%) due in particular to the ongoing growth in prices of ribbed bars.

GRMUK – Materials costs

  • Source: INSEE

Equipment costs accelerated in building construction

In June 2016, equipment costs recovered in building construction (+2.5% after −1.4%). They were stable in public works (after +0.1% in May).

GRKUK – Equipment cost

  • Source: INSEE

GRtravailUK – Labour cost in construction

  • Source: INSEE

Energy costs continued to increase

In June 2016, the costs of energy in building construction continued to increase strongly (+4.7% after +4.6% in May), due mostly to a further rise in the prices of road diesel fuel. Similarly, in public works, they rose again (+3.5% after +4.1%), because of the increase in the prices of petroleum products as well as in the prices of electricity.

However, these costs were still lower than a year before in building construction (−4.4% year-on-year) and in public works (−9.0%).

GRenergieUK – Energy cost

  • Source: INSEE

revision – Measure of variations' revisions

(in percentage points)
Measure of variations' revisions
Mar. 16 Apr. 16 May 16
F Construction /// -0,1 -0,3
41.2 Construction of buildings /// -0,1 -0,1
42 Civil engineering /// -0,1 -0,1
43 Specialised construction works /// -0,2 -0,3
  • ///: unchanged
  • How to read it: producer cost variation for construction in May 2016 published in August 2016 has been updated from +0.4% to +0.1%, that is to say a downward revision by 0.3 points.
  • Source: INSEE