In November 2016, producer costs for construction rose slightly (+0.2%)Costs of production indices in construction - November 2016

In November 2016, producer costs for construction increased slighlty (+0.2%) after a two-month near stability. They continued to grow in civil engineering (+0.5% after +0.4%). They were virtually stable in specialised construction works (+0.1% as in the past two months) and in building construction (+0.1% after 0.0%). Over a year, producer costs rose in the entire construction sector (+1.4 % as in the previous month). They were a little less dynamic in building construction (+1.2% as in October) and in the specialised construction works (+1.3% after +1.5%) than in civil engineering, in which they accelerated (+1.8% after +1.2%).

In November 2016, producer costs for construction increased slighlty (+0.2%) after a two-month near stability. They continued to grow in civil engineering (+0.5% after +0.4%). They were virtually stable in specialised construction works (+0.1% as in the past two months) and in building construction (+0.1% after 0.0%). Over a year, producer costs rose in the entire construction sector (+1.4 % as in the previous month). They were a little less dynamic in building construction (+1.2% as in October) and in the specialised construction works (+1.3% after +1.5%) than in civil engineering, in which they accelerated (+1.8% after +1.2%).

Table1 – Variations in producer cost indices for construction

In %
Variations in producer cost indices for construction
NAF Heading Weights (in %) Nov 16/ Oct 16 Nov 16/ Nov 15
F Construction 100.0 +0.2 +1.4
41.2 Construction of buildings 10.1 +0.1 +1.2
42 Civil engineering 16.2 +0.5 +1.8
43 Specialised construction works 73.7 +0.1 +1.3
43BT Buildings 64.2 +0.1 +1.3
43BTC New buildings 24.6 +0.1 +1.1
43BTR Existing buildings 39.6 0.0 +1.4
43TP Specialised works for civil engineering 9.5 +0.3 +1.8
BT Buildings (41.2 + 43BT) 74.3 0.0 +1.2
TP Public works (42 + 43TP) 25.7 +0.4 +1.8
  • Source: INSEE

Table2 – Items of producer cost indices for construction

In %
Items of producer cost indices for construction
Costs items Q3 16 / Q2 16 Nov 16/ Oct 16 Nov 16/ Nov 15
Equipment Buildings -0.4 -0.2 -2.4
Public works -0.2 +0.2 +0.2
Labour Labour costs in construction +1.0 /// ///
Energy Buildings +0.5 +1.3 +5.2
Public works +0.9 +0.4 +5.0
Materials Construction of buildings +1.4 0.0 -0.6
Existing buildings +0.6 0.0 -0.5
Civil engineering +3.5 +1.1 +1.5
Specialised works for civil engineering +0.3 -0.2 -0.9
Services Construction +0.9 -0.5 +0.6
Transport Buildings 0.0 +0.4 +1.3
Public works -0.3 0.0 +0.4
  • ///: non published estimation
  • Source: INSEE

Graph1 – Production costs in construction

  • Source: INSEE

Materials cost accelerated in civil engineering

In November 2016, materials cost accelerated in civil engineering (+1.1% after +0.3%) due to a stronger rise in bitumen prices. It was stable in building construction as well as in the renovation of existing buildings after a decrease in October. Materials cost continued to decline slightly in specialised works for civil engineering (−0.2% as in October).

Over a year, materials cost rose in civil engineering (+1.5 %). However, it remained lower than a year before in building construction (−0.6%) as well as in renovation of existing buildings (−0.5%) and in specialised works for civil engineering (−0.9%).

Graph2 – Materials cost

  • Source: INSEE

Equipment cost decreased sligthly in building construction and increased slightly in public works

In November 2016, equipment cost declined slighlty in building construction (−0.2% after +0.5%); it decreased by 2.4% yoy. In public works, it rose moderately over a month (+0.2% after +0.1% in October) as well as over a year (+0.2% after −0.3%).

Graph3 – Equipment cost

  • Source: INSEE

Graph4 – Labour cost in construction

  • Source: INSEE

Energy cost increased again

In November 2016, the cost of energy rose in building construction (+1.3% after +2.4%) and to a lesser extent in public works (+0.4% after +4.3%).

Over a year, the cost of energy accelerated in building construction (+5.2% after +3.2%) and in public works (+5.0% after +4.1%).

Graph5 – Energy cost

  • Source: INSEE

Table3 – Variations' revisions

(in percentage points)
Variations' revisions
August 16 Sept. 16 Oct. 16
F Construction /// /// ///
41.2 Construction of buildings /// /// ///
42 Civil engineering /// /// ///
43 Specialised construction works /// /// ///
  • ///: unchanged
  • How to read it: the variation in producer cost for construction in October 2016 has not been revised, it remained at +0.1% as published in January 2017.
  • Source: INSEE

Warning :

Monthly production cost indices in construction will be released on a quarterly basis after the next publication which will be in March 17, 2017. The next issue will take place in June 2017 and will present the results of Q1 2017.