In July 2016, producer costs for construction were stableCosts of production indices in construction - July 2016

In July 2016, producer costs in construction were stable following two monthly increases (including +0.5% in June). In particular, costs remained unchanged in specialised construction works and they were virtually stable in the construction of buildings sector (+0.1%). However, costs slightly rose in civil engineering (+0.3%).

In July 2016, producer costs in construction were stable following two monthly increases (including +0.5% in June). In particular, costs remained unchanged in specialised construction works and they were virtually stable in the construction of buildings sector (+0.1%). However, costs slightly rose in civil engineering (+0.3%).

Over a year, producer costs remained practically unchanged in construction (−0.1 % after 0.0% in June). They were virtually stable in building construction (+0.1% after +0.2%). They slowed slightly in specialised construction works (+0.4% after +0.5%) and they continued to decrease in civil engineering (−2.0% after −2.6%).

tablo1 – Variations in producer cost indices for construction

In %
Variations in producer cost indices for construction
NAF Heading Weights (in %) July 16/ June 16 July 16 / July 15
F Construction 100.0 0.0 -0.1
41.2 Construction of buildings 10.1 +0.1 +0.1
42 Civil engineering 16.2 +0.3 -2.0
43 Specialised construction works 73.7 0.0 +0.4
43BT Buildings 64.2 0.0 +0.7
43BTC New buildings 24.6 +0.1 +0.2
43BTR Existing buildings 39.6 0.0 +0.9
43TP Specialised works for civil engineering 9.5 +0.1 -1.3
BT Buildings (41.2 + 43BT) 74.3 0.0 +0.7
TP Public works (42 + 43TP) 25.7 +0.2 -1.7
  • Source: INSEE

tablo2 – Items of producer cost indices for construction

In %
Items of producer cost indices for construction
Costs items Q2 16 / Q1 16 July 16/ June 16 July 16 / July 15
Equipment Buildings -0.2 -0.9 +1.6
Public works 0.0 -0.1 +0.2
Labour Labour costs in construction -0.5 /// ///
Energy Buildings +7.5 -2.4 -4.4
Public works +6.0 -2.7 -7.9
Materials Construction of buildings +0.4 +0.1 -2.2
Existing buildings +0.1 -0.2 -1.3
Civil engineering +2.0 +1.3 -6.6
Specialised works for civil engineering -0.1 -0.1 -1.4
Services Construction +0.3 +1.1 0.0
Transport Buildings +1.5 -0.4 -0.5
Public works +0.4 0.0 -0.2
  • ///: non published estimation
  • Source: INSEE

GRCoutUK – Production costs in construction

  • Source: INSEE

Material costs slowed down

In July 2016, material costs were virtually stable in building construction (+0.1% after +0.9 % in June). Over a year, however, they fell by 2.2%. In civil engineering, they slowed down (+1.3% after +2.9%) due to decelerating bitumen prices. Year-on-year, however, they kept declining sharply (−6.6%).

In specialised works for civil engineering, the costs of materials were virtually stable (−0.1% after +0.3%) but, year-on-year, they decreased further (−1.4%).

GRMUK – Materials costs

  • Source: INSEE

Equipment costs decreased in building construction

In July 2016, equipment costs decreased again in building construction (−0.9%) after rebunding in June (+1.2%). They were virtually stable in public works (−0.1% like in the previous month).

GRKUK – Equipment cost

  • Source: INSEE

GRtravailUK – Labour cost in construction

  • Source: INSEE

Downturn in energy costs

In July 2016, the costs of energy fell back in building construction (−2.4% after +4.7%) and in public works (−2.7% after +3.5%), because of the decrease in the prices of petroleum products and electricity.

Over a year, the costs of energy retreated again in building construction (−4.4%) and in public works (−7.9%).

GRenergieUK – Energy cost

  • Source: INSEE

revision – Variations' revisions

(in percentage points)
Variations' revisions
Apr. 16 May 16 June 16
F Construction /// +0.1 ///
41.2 Construction of buildings /// /// +0.1
42 Civil engineering /// /// +0.1
43 Specialised construction works /// +0.1 -0.1
  • ///: unchanged
  • How to read it: producer cost variation for building construction in June 2016 published in September 2016 has been updated from +0.3% to +0.4%, that is to say an upward revision by 0.1 points.
  • Source: INSEE