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In Q3 2017, producer costs for construction slightly increased (+0.2%)Costs of production indices in construction - third quarter 2017

In Q3 2017, producer costs for construction increased slightly (+0.2% after +0.3%). They increased in building construction (+0.3% after +0.4%) and in specialised construction works (+0.3% as in the previous quarter). They recovered very modestly in civil engineering (+0.1% after −0.3%). Over a year, though, these costs remained dynamic (+2.0% after +2.7% in Q2 2017). Again, they rose sharply in every sectors, although at a lower rate than in the previous quarters: in civil engineering (+2.8% after +4.2%), in building construction (+1.8% after +2.4%) and in specialised construction works (+1.9% after +2.4% in Q2 2017).

In Q3 2017, producer costs for construction increased slightly (+0.2% after +0.3%). They increased in building construction (+0.3% after +0.4%) and in specialised construction works (+0.3% as in the previous quarter). They recovered very modestly in civil engineering (+0.1% after −0.3%). Over a year, though, these costs remained dynamic (+2.0% after +2.7% in Q2 2017). Again, they rose sharply in every sectors, although at a lower rate than in the previous quarters: in civil engineering (+2.8% after +4.2%), in building construction (+1.8% after +2.4%) and in specialised construction works (+1.9% after +2.4% in Q2 2017).

Materials cost decreased slightly in buildings, it was stable in civil engineering

In Q3 2017, the cost of materials decreased slightly in building construction (−0.2% after +0.7%) whereas it increased in renovation of existing buildings (+0.2% after +0.7%). It was stable in civil engineering (after −0.5%) and almost unchanged in specialised works for civil engineering (+0.1% after a stability).

Over a year, materials cost was still dynamic in civil engineering (+4.7% after +8.5%). It slowed down in building construction (+1.6% after +3.2%) and in renovation of existing buildings (+2.1% after +2.5%).

Graph2 – Materials cost

  • Source: INSEE

Energy cost feel back

In Q3 2017, the cost of energy continued to decline in building construction (−1.5% after −3.7%) and in public works (−1.7% after −5.0%).

Over a year, the increase in the cost of energy was less marked than at the beginning of the year but it remained significant (+7.3% after +10.0% in public works and +7.1% after +9.3% in building construction).

Graph5 – Energy cost

  • Source: INSEE

Graph1 – Production costs in construction

  • Source: INSEE

Table1 – Variations in producer cost indices for construction

In %
Variations in producer cost indices for construction
Heading Weights (in %) Q3 2017/ Q2 2017 Q3 2017/ Q3 2016
F Construction 100.0 +0.2 +2.0
41.2 Construction of buildings 10.1 +0.3 +1.8
42 Civil engineering 16.2 +0.1 +2.8
43 Specialised construction works 73.7 +0.3 +1.9
43BT Buildings 64.2 +0.3 +1.9
43BTC New buildings 24.6 +0.3 +1.8
43BTR Existing buildings 39.6 +0.5 +2.0
43TP Specialised works for civil engineering 9.5 +0.1 +2.6
Buildings (41.2 + 43BT) 74.3 +0.3 +1.8
Public works (42 + 43TP) 25.7 +0.1 +2.7
  • Source: INSEE

Table2 – Items of producer cost indices for construction

In %
Items of producer cost indices for construction
Costs items Q3 2017/ Q2 2017 Q3 2017/ Q3 2016
Equipment Buildings -0.2 -0.5
Public works -0.2 +0.4
Labour Labour costs in construction +0.8 +2.3
Energy Buildings -1.5 +7.1
Public works -1.7 +7.3
Materials Construction of buildings -0.2 +1.6
Existing buildings +0.2 +2.1
Civil engineering 0.0 +4.7
Specialised works for civil engineering +0.1 +0.4
  • Source: INSEE

Equipment cost slightly decreased in building construction and in public works

In Q3 2017, equipment cost slightly decreased in building construction (−0.2% after −0.3%); it declined by 0.5% yoy (after −0.6%). In public works, it slightly declined too (−0.2% after a stability in Q2 2017) and it increased slightly over a year (+0.4% after +0.5%).

Graph3 – Equipment cost

  • Source: INSEE

The variation in production costs in construction was not revised in Q2 2017

In Q2 2017, the variation in producer costs in construction remained at 0.3%.