In September 2016, producer costs for construction increased slighlty (+0.2%)Costs of production indices in construction - September 2016

In September 2016, producer costs in construction increased slighlty (+0.2% as in the last two months). They rose somewhat in the construction of buildings (+0.2% after +0.3%) like in civil engineering (+0.2% after 0.0%) and they were virtually stable in specialised construction works (+0.1% after +0.2%). Over a year, producer costs accelerated in the entire construction sector (+1.3 % after +0.6%). This trend held for building construction (+1.2% after +0.6%) as well as for specialised construction works (+1.3% after +0.9%). Producer costs recovered in civil engineering, the first increase since the end of 2012 (a year-on-year rise of 0.4%).

In September 2016, producer costs in construction increased slighlty (+0.2% as in the last two months). They rose somewhat in the construction of buildings (+0.2% after +0.3%) like in civil engineering (+0.2% after 0.0%) and they were virtually stable in specialised construction works (+0.1% after +0.2%). Over a year, producer costs accelerated in the entire construction sector (+1.3 % after +0.6%). This trend held for building construction (+1.2% after +0.6%) as well as for specialised construction works (+1.3% after +0.9%). Producer costs recovered in civil engineering, the first increase since the end of 2012 (a year-on-year rise of 0.4%).

Table1 – Variations in producer cost indices for construction

In %
Variations in producer cost indices for construction
NAF Heading Weights (in %) Sep. 16/ Aug. 16 Sep. 16/ Sep. 15
F Construction 100.0 +0.2 +1.3
41.2 Construction of buildings 10.1 +0.2 +1.2
42 Civil engineering 16.2 +0.2 +0.4
43 Specialised construction works 73.7 +0.1 +1.3
43BT Buildings 64.2 +0.2 +1.5
43BTC New buildings 24.6 +0.2 +1.3
43BTR Existing buildings 39.6 +0.1 +1.7
43TP Specialised works for civil engineering 9.5 +0.2 +0.7
BT Buildings (41.2 + 43BT) 74.3 +0.1 +1.4
TP Public works (42 + 43TP) 25.7 +0.2 +0.5
  • Source: INSEE

Table2 – Items of producer cost indices for construction

In %
Items of producer cost indices for construction
Costs items Q3 16 / Q2 16 Sep. 16/ Aug. 16 Sep. 16/ Sep. 15
Equipment Buildings -0.3 +0.3 +0.4
Public works -0.2 0.0 -0.6
Labour Labour costs in construction +1.0 /// ///
Energy Buildings +0.5 +1.6 +0.8
Public works +0.9 +1.1 -0.7
Materials Construction of buildings +1.4 +0.1 -0.9
Existing buildings +0.6 -0.1 -0.7
Civil engineering +3.5 +0.3 -1.6
Specialised works for civil engineering +0.3 +0.1 -1.2
Services Construction +0.9 -1.1 +0.6
Transport Buildings +0.2 +0.3 +0.7
Public works -0.3 0.0 +1.3
  • ///: non published estimation
  • Source: INSEE

Graph1 – Production costs in construction

  • Source: INSEE

Material costs were virtually stable in the construction of buildings

In September 2016, material costs were virtually stable in building construction (+0.1% after +0.5%) and in specialised works for civil engineering (+0.1% after 0.0%). They rebounded in civil engineering (+0.3% after −0.3%). Over a year, material costs still decreased in all sectors : in the construction of buildings (−0.9%) as well as in the renovation of existing buildings (−0.7%), in civil engineering (−1.6%) and in specialised works for civil engineering (−1.2%).

Graph2 – Materials costs

  • Source: INSEE

Equipment cost increased moderately

In September 2016, equipment cost increased moderately in building construction (+0.3% after a stability in August). It was unchanged in public works as in August.

Graph3 – Equipment cost

  • Source: INSEE

Graph4 – Labour cost in construction

  • Source: INSEE

Energy cost bounced back

In September 2016, the cost of energy increased in building construction (+1.6%) and in public works (+1.1%) following two consecutive months of decline.

Over a year, the cost of energy remained on a downward trend in public works (−0.7% after −2.6%). In building construction, it was higher than a year ago (+0.8%) for the first time since the end of 2012.

Graph5 – Energy cost

  • Source: INSEE

Table3 – Variations' revisions

(in percentage points)
Variations' revisions
June 16 July 16 August 16
F Construction /// +0.1 +0.1
41.2 Construction of buildings /// +0.1 +0.1
42 Civil engineering -0.1 +0.1 +0.1
43 Specialised construction works /// +0.1 +0.1
  • ///: unchanged
  • How to read it: the variation in producer cost for construction in August 2016 has been revised upward by 0.1 points, from +0.1% published in November 2016 to +0.2%.
  • Source: INSEE