In August 2016, producer costs for construction were virtually stable (+0.1%)Costs of production indices in construction - August 2016

In August 2016, producer costs in construction were virtually stable again (+0.1%). They rose slightly in construction of buildings (+0.2% after +0.1%) and were virtually stable in specialised construction works (+0.1% like in the previous month) and in civil engineering (−0.1% after five consecutive months of rise). Over a year, producer costs increased in construction (+0.3 %) for the first time since the spring of 2014 : they rose again in building construction (+0.4% after +0.2%) and in specialised construction works (+0.6% after +0.5%) while they decreased less steeply in civil engineering (−1.4% after −2.0%).

Informations rapides
No 297
Paru le : 15/11/2016

In August 2016, producer costs in construction were virtually stable again (+0.1%). They rose slightly in construction of buildings (+0.2% after +0.1%) and were virtually stable in specialised construction works (+0.1% like in the previous month) and in civil engineering (−0.1% after five consecutive months of rise). Over a year, producer costs increased in construction (+0.3 %) for the first time since the spring of 2014 : they rose again in building construction (+0.4% after +0.2%) and in specialised construction works (+0.6% after +0.5%) while they decreased less steeply in civil engineering (−1.4% after −2.0%).

Table1 – Variations in producer cost indices for construction

In %
Variations in producer cost indices for construction
NAF Heading Weights (in %) Aug. 16/ July 16 Aug. 16/ Aug 15
F Construction 100.0 +0.1 +0.3
41.2 Construction of buildings 10.1 +0.2 +0.4
42 Civil engineering 16.2 -0.1 -1.4
43 Specialised construction works 73.7 +0.1 +0.6
43BT Buildings 64.2 +0.1 +0.8
43BTC New buildings 24.6 +0.2 +0.4
43BTR Existing buildings 39.6 +0.1 +1.1
43TP Specialised works for civil engineering 9.5 -0.1 -0.8
BT Buildings (41.2 + 43BT) 74.3 +0.1 +0.8
TP Public works (42 + 43TP) 25.7 -0.1 -1.2
  • Source: INSEE

Table2 – Items of producer cost indices for construction

In %
Items of producer cost indices for construction
Costs items Q2 16 / Q1 16 Aug. 16/ July 16 Aug. 16/ Aug 15
Equipment Buildings -0.2 0.0 +0.2
Public works 0.0 0.0 -0.8
Labour Labour costs in construction -0.5 /// ///
Energy Buildings +7.5 -3.2 -2.5
Public works +6.2 -0.9 -2.6
Materials Construction of buildings +0.4 +0.6 -1.6
Existing buildings +0.1 +0.3 -1.0
Civil engineering +2.0 -0.4 -5.4
Specialised works for civil engineering -0.2 0.0 -1.9
Services Construction +0.4 -0.2 +0.2
Transport Buildings +1.5 -0.6 -0.1
Public works +0.4 0.0 -0.2
  • ///: non published estimation
  • Source: INSEE

Graph1 – Production costs in construction

  • Source: INSEE

Material costs rose in construction of buildings

In August 2016, material costs rose in building construction (+0.6% after 0.0%) and in renovation of existing buildings (+0.3% after −0.1%). In civil engineering, these costs declined (−0.4%), after four months of rise, due to the downturn in bitumen prices. In specialised works for civil engineering, they were stable like in July. Material costs remained lower than a year before in all sectors : in construction of buildings (−1.6%) as well as in renovation of existing buildings (−1.0%), in civil engineering (−5.4%) and in specialised works for civil engineering (−1.9%).

Graph2 – Materials costs

  • Source: INSEE

Equipment cost was stable

In August 2016, equipment cost was stable in building construction after a decline in July (−0.9%). It was stable in public works too (after −0.2% in July).

Graph3 – Equipment cost

  • Source: INSEE

Graph4 – Labour cost in construction

  • Source: INSEE

Energy cost declined

In August 2016, the cost of energy continued to decline in building construction (−3.2% after −2.3%) and to a lesser extent in public works (−0.9% after −2.9%), because of the decrease in the prices of diesel.

Over a year, the cost of energy decreased in building construction (−2.5%) as well as in public works (−2.6%).

Graph5 – Energy cost

  • Source: INSEE

Table3 – Variations' revisions

(in percentage points)
Variations' revisions
May 16 June 16 July 16
F Construction /// /// +0.1
41.2 Construction of buildings +0.1 /// ///
42 Civil engineering /// /// ///
43 Specialised construction works /// /// -0.1
  • ///: unchanged
  • How to read it: the variation producer cost for construction in July 2016 has been upward by 0.1 points, from 0.0% published in October 2016 to 0.1%.
  • Source: INSEE

Documentation

Methodology (pdf, 149 Ko)