In December 2016, producer costs for construction increased (+0.3%)Costs of production indices in construction - December 2016

In December 2016, producer costs for construction increased (+0.3%) after a two-month near stability (+0.1%). Over a year, these costs accelerated (+1.8 % after +1.4%). They were more dynamic in civil engineering (+3.0% after +1.8%) than in building construction (+1.6% after +1.2%) and in specialised construction works (+1.7% after +1.3%).

Publications for experts
Informations rapides – No 68
Paru le : 03/17/2017

Warning : Monthly production cost indices in construction will be released on a quarterly basis. The next issue will be published in June 2017 and will present the results of Q1 2017.

In December 2016, producer costs for construction increased (+0.3%) after a two-month near stability (+0.1%). Over a year, these costs accelerated (+1.8 % after +1.4%). They were more dynamic in civil engineering (+3.0% after +1.8%) than in building construction (+1.6% after +1.2%) and in specialised construction works (+1.7% after +1.3%).

Table1 – Variations in producer cost indices for construction

In %
Variations in producer cost indices for construction
NAF Heading Weights (in %) Dec 16/ Nov 16 Dec 16/ Dec 15
F Construction 100.0 +0.3 +1.8
41.2 Construction of buildings 10.1 +0.3 +1.6
42 Civil engineering 16.2 +0.4 +3.0
43 Specialised construction works 73.7 +0.3 +1.7
43BT Buildings 64.2 +0.3 +1.5
43BTC New buildings 24.6 +0.3 +1.4
43BTR Existing buildings 39.6 +0.3 +1.5
43TP Specialised works for civil engineering 9.5 +0.4 +2.9
BT Buildings (41.2 + 43BT) 74.3 +0.2 +1.4
TP Public works (42 + 43TP) 25.7 +0.4 +2.9
  • Source: INSEE

Table2 – Items of producer cost indices for construction

In %
Items of producer cost indices for construction
Costs items Q4 16/ Q3 16 Dec 16/ Nov 16 Dec 16/ Dec 15
Equipment Buildings +0.5 -0.1 -1.3
Public works 0.0 0.0 +0.4
Labour Labour costs in construction /// /// ///
Energy Buildings +3.5 +1.0 +8.9
Public works +6.4 +3.9 +16.8
Materials Construction of buildings -0.4 +0.3 +0.5
Existing buildings -0.3 +0.5 +0.3
Civil engineering +1.3 +0.3 +3.6
Specialised works for civil engineering -0.4 -0.2 -0.5
Services Construction -0.6 +0.8 +0.8
Transport Buildings +0.6 +0.2 +1.8
Public works +0.1 0.0 +0.8
  • ///: non published estimation
  • Source: INSEE

Graph1 – Production costs in construction

  • Source: INSEE

Materials cost rose except in specialised works for civil engineering

In December 2016, materials cost rose by 0.3% in building construction and in civil engineering and by 0.5% in renovation of existing buildings. It continued to decline slightly in specialised works for civil engineering (−0.2% as in the two previous months). Over a year, materials cost accelerated in civil engineering (+3.6% after +1.6%) due to a rise in bitumen prices. It increased in building construction (+0.5%) and in renovation of existing buildings (+0.3%) while it decreased again in specialised works for civil engineering (−0.5% after −0.9%).

Graph2 – Materials cost

  • Source: INSEE

Equipment cost was virtually stable in building construction and stable in public works

In December 2016, equipment cost was virtually stable in building construction (−0.1% after −0.3%); it decreased by 1.3% yoy. In public works, it was stable over a month (after +0.3% in November) and it increased slightly over a year (+0.4% after 0.0%).

Graph3 – Equipment cost

  • Source: INSEE

Graph4 – Labour cost in construction

  • Source: INSEE

Energy cost accelerated sharply in public works

In December 2016, the cost of energy rose again in building construction (+1.0% after +1.3%) and accelerated sharply in public works (+3.9% after +0.4%).

Over a year, the cost of energy jumped in building construction (+8.9% after +5.2%) and in public works (+16.8% after +4.9%) due to a surge in diesel and fuel oil prices.

Graph5 – Energy cost

  • Source: INSEE

Table3 – Variations' revisions

(in percentage points)
Variations' revisions
Sept. 16 Oct. 16 Nov. 16
F Construction +0.1 /// −0.1
41.2 Construction of buildings +0.1 /// −0.1
42 Civil engineering +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 November 2016 has been revised downward by 0.1 points, from +0.2% published in January 2017 to +0.1%.
  • Source: INSEE

Documentation

Methodology (pdf, 149 Ko)