15 September 2017
2017- n° 243In Q2 2017, producer costs for construction slowed down (+0.3%) Costs of production indices in construction - second quarter 2017
In Q2 2017, producer costs for construction increased slightly, not as much as in Q4 2016 (+0.3% after +1.0%). They slowed down in building construction (+0.4% after +0.8%) and in specialised construction works (+0.3% after +0.8%) while they decreased in civil engineering (−0.3%) after four quarters of growth. Over a year, though, these costs remained dynamic (+2.6% after +2.8% in Q1 2017). Again, they rose sharply in civil engineering (+4.1% after +5.7%) and to a lesser extent in building construction and in specialised construction works (+2.3% in both sectors as in the previous quarter).
Warning : Monthly production cost indices in construction have been released on a quarterly basis since June 2017. The comments provided below concern the second quarter of 2017.
In Q2 2017, producer costs for construction increased slightly, not as much as in Q4 2016 (+0.3% after +1.0%). They slowed down in building construction (+0.4% after +0.8%) and in specialised construction works (+0.3% after +0.8%) while they decreased in civil engineering (−0.3%) after four quarters of growth. Over a year, though, these costs remained dynamic (+2.6% after +2.8% in Q1 2017). Again, they rose sharply in civil engineering (+4.1% after +5.7%) and to a lesser extent in building construction and in specialised construction works (+2.3% in both sectors as in the previous quarter).
Materials cost increased in buildings, it decreased in civil engineering
In Q2 2017, the cost of materials rose again, albeit to a lesser extent than in Q1 2017, in building construction (+0.8% after +1.4%) and in renovation of existing buildings (+0.7% after 1.4%). However, it fell back in civil engineering (−0.5% after +4.0%) due to a downturn in bitumen prices. It was stable in specialised works for civil engineering (after +0.7% in Q1 2017).
Over a year, materials cost was still dynamic in civil engineering (+8.4% after +11.2%). It accelerated in building construction (+3.2% after +2.8%) and in renovation of existing buildings (+2.5% after +1.8%).
graphiqueGraph2 – Materials cost
- Source: INSEE
Energy cost feel back sharply
In Q2 2017, the cost of energy declined in building construction (−3.7%) and in public works (−5.2%) due to a decrease in fuel oil and gas oil.
Over a year, the increase in the cost of energy was less marked than at the beginning of the year but it remained significant (+9.9% after +23.0% in public works and +9.3% after +22.0% in building construction).
graphiqueGraph5 – Energy cost
- Source: INSEE
graphiqueGraph1 – Production costs in construction
- Source: INSEE
tableauTable1 – Variations in producer cost indices for construction
| Heading | Weights (in %) | Q2 2017/ Q1 2017 | Q2 2017/ Q2 2016 |
|---|---|---|---|
| F Construction | 100.0 | +0.3 | +2.6 |
| 41.2 Construction of buildings | 10.1 | +0.4 | +2.3 |
| 42 Civil engineering | 16.2 | -0.3 | +4.1 |
| 43 Specialised construction works | 73.7 | +0.3 | +2.3 |
| 43BT Buildings | 64.2 | +0.4 | +2.1 |
| 43BTC New buildings | 24.6 | +0.4 | +2.3 |
| 43BTR Existing buildings | 39.6 | +0.4 | +2.0 |
| 43TP Specialised works for civil engineering | 9.5 | -0.3 | +3.5 |
| Buildings (41.2 + 43BT) | 74.3 | +0.4 | +2.2 |
| Public works (42 + 43TP) | 25.7 | -0.3 | +3.9 |
- Source: INSEE
tableauTable2 – Items of producer cost indices for construction
| Costs | items | Q2 2017/ Q1 2017 | Q2 2017/ Q2 2016 |
|---|---|---|---|
| Equipment | Buildings | -0.5 | -0.8 |
| Public works | -0.1 | +0.4 | |
| Labour | Labour costs in construction | +0.4 | +2.7 |
| Energy | Buildings | -3.7 | +9.3 |
| Public works | -5.2 | +9.9 | |
| Materials | Construction of buildings | +0.8 | +3.2 |
| Existing buildings | +0.7 | +2.5 | |
| Civil engineering | -0.5 | +8.4 | |
| Specialised works for civil engineering | 0.0 | +0.6 |
- Source: INSEE
Equipment cost slightly decreased in building construction and was practically stable in public works
In Q2 2017, equipment cost decreased again in building construction (−0.5% after −0.4%); it declined by 0.8% yoy (after −0.5%). In public works, it was practically stable over the quarter (−0.1% after +0.8% in Q1 2017) and it increased slightly over a year (+0.4% after +0.5%).
graphiqueGraph3 – Equipment cost
- Source: INSEE
The variation in production costs in construction has been slightly revised downward for Q1 2017
The variation in producer costs in construction between the fourth quarter of 2016 and the first quarter of 2017 has been revised downward by 0.1 points, to1.0%.
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Time series : Producer cost indices for construction
