In October 2016, near stability in producer costs for construction (+0.1%)Costs of production indices in construction - October 2016

In October 2016, producer costs in construction were virtually stable (+0.1% as in September). They rose in civil engineering (+0.4% after +0.2%) and they were virtually stable in specialised construction works (+0.1% as in September) and in the construction of buildings (−0.1% after +0.1%). Over a year, producer costs continued to accelerate in the entire construction sector (+1.4 % after +1.2%). This trend held for the three subsectors: the construction of buildings (+1.2% after +1.1%), the specialised construction works (+1.5% after +1.3%) and the sector of civil engineering (+1.2% after +0.4%).

In October 2016, producer costs in construction were virtually stable (+0.1% as in September). They rose in civil engineering (+0.4% after +0.2%) and they were virtually stable in specialised construction works (+0.1% as in September) and in the construction of buildings (−0.1% after +0.1%). Over a year, producer costs continued to accelerate in the entire construction sector (+1.4 % after +1.2%). This trend held for the three subsectors: the construction of buildings (+1.2% after +1.1%), the specialised construction works (+1.5% after +1.3%) and the sector of civil engineering (+1.2% after +0.4%).

Table1 – Variations in producer cost indices for construction

In %
Variations in producer cost indices for construction
NAF Heading Weights (in %) Oct 16/ Sept 16 Oct 16/ Oct 15
F Construction 100.0 +0.1 +1.4
41.2 Construction of buildings 10.1 -0.1 +1.2
42 Civil engineering 16.2 +0.4 +1.2
43 Specialised construction works 73.7 +0.1 +1.5
43BT Buildings 64.2 +0.1 +1.5
43BTC New buildings 24.6 0.0 +1.3
43BTR Existing buildings 39.6 +0.1 +1.7
43TP Specialised works for civil engineering 9.5 +0.4 +1.4
BT Buildings (41.2 + 43BT) 74.3 0.0 +1.4
TP Public works (42 + 43TP) 25.7 +0.4 +1.3
  • Source: INSEE

Table2 – Items of producer cost indices for construction

In %
Items of producer cost indices for construction
Costs items Q3 16 / Q2 16 Oct 16/ Sept 16 Oct 16/ Oct 15
Equipment Buildings -0.4 +0.5 -0.9
Public works -0.2 +0.1 -0.3
Labour Labour costs in construction +1.0 /// ///
Energy Buildings +0.5 +2.4 +3.2
Public works +0.9 +3.4 +3.2
Materials Construction of buildings +1.4 -0.7 -1.0
Existing buildings +0.6 -0.3 -0.9
Civil engineering +3.5 +0.3 -0.1
Specialised works for civil engineering +0.3 -0.2 -0.9
Services Construction +0.9 +0.3 +0.7
Transport Buildings 0.0 +0.5 +0.8
Public works -0.3 0.0 +0.4
  • ///: non published estimation
  • Source: INSEE

Graph1 – Production costs in construction

  • Source: INSEE

Material costs fell in the construction of buildings

In October 2016, material costs fell in building construction (−0.7% after +0.1%), in the renovation of existing building (−0.3% après −0.1%) and in specialised works for civil engineering (−0.2% after +0.2%). However, they increased again in civil engineering (+0.3% as in September). Over a year, material costs still decreased in the building industry –whether for new construction (−1.0%) or building renovation (−0.9%) – and in specialised works for civil engineering (−0.9%). They remained practically unchanged in civil engineering (−0.1% yoy)

Graph2 – Materials costs

  • Source: INSEE

Equipment cost increased again in building industry

In October 2016, equipment cost increased again in building construction (+0.5% after +0.2%). It was virtually stable in public works (+0.1% after 0.0% in September).

Graph3 – Equipment cost

  • Source: INSEE

Graph4 – Labour cost in construction

  • Source: INSEE

Energy cost accelerated

In October 2016, the cost of energy accelerated in building construction (+2.4% after +1.6%) and in public works (+3.4% after +1.1%).

Over a year, the cost of energy rebounded in public works for the first time since the end of 2012 (+3.2% after −0.7% in September). In building construction, it accelerated (+3.2% after +0.8%).

Graph5 – Energy cost

  • Source: INSEE

Table3 – Variations' revisions

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

Documentation

Methodology (pdf, 149 Ko)