Construction Cost Index for buildings, August 2021
Construction costs rose by 7.0 percent in August on an annual basis
Statistical news from Statistics Sweden 2021-09-15 9.30
The Construction Cost Index for multi-dwelling buildings rose by 0.9 percent between July and August 2021. The annual rate of change in construction costs was 7.0 percent in August, up from 6.7 percent in July 2021.
| Index | Change in percent | |||
|---|---|---|---|---|
| August | July 2021– August 2021 |
August 2020– August 2021 |
||
| Contractors´costs (82%) | 121.3 | 1.1 | 7.9 | |
| Construction clients’ costs (18%) | 116.3 | 0.2 | 2.7 | |
| Total Construction cost index (100%) | 120.4 | 0.9 | 7.0 | |
Changes in the last month
The Construction Cost Index for multi-dwelling buildings increased by 0.9 percent in August compared with July. In the corresponding period in 2020, the Construction Cost Index increased by 0.7 percent.
Contractors’ costs increased by 1.1 percent between July and August 2021 and construction clients’ costs increased by 0.2 percent. These two groups accounted for 82 percent and 18 percent of the Construction Cost Index, respectively.
Contractors’ costs for building materials increased by 2.0 percent between July and August 2021. In the group ‘building materials’, the cost of wood products continued to increase, by 17.9 percent. The costs of plumbing material rose by 3.9 percent. This was mostly due to higher costs for steel and plastic. All costs in building material groups rose slightly or remained unchanged.
Contractors’ costs in the group ‘transport, fuel and electricity’ increased by 1.0 percent. Machinery costs and overhead costs increased by 1.4 percent and 0.2 percent respectively. Costs of wages and salaries remained unchanged.
Construction clients’ costs consist of interest and credit costs, costs for plans, and central administration. All of the construction clients’ costs rose slightly or remained unchanged.
Changes in the last year
The Construction Cost Index for multi-dwelling buildings increased by 7.0 percent between August 2020 and August 2021. Contractors’ costs rose by 7.9 percent, which led to an upward contribution of 6.5 percentage points to the total increase in the Construction Cost Index. Construction clients’ costs increased by 2.7 percent, which led to an upward contribution of 0.5 percentage points to the total index in the same period.
Contractors’ costs of building materials increased by 14.4 percent between August 2020 and August 2021. In the group ‘building materials’, the sharply rising cost of wood products and reinforcement steel persisted. Costs have been increased for several months due to a shortage of raw materials as a result of rising global demand. Wood products and reinforcement steel increased by 83.3 percent and 64.5 percent respectively. The costs of iron and steel, including reinforcement steel, rose by 37.4 percent. All costs in building material groups rose.
Between August 2020 and August 2021, contractors’ costs for wages and salaries increased by 3.0 percent. Contractors’ costs in the group ‘transport, fuel and electricity’ increased by 10.1 percent. Overhead costs rose by 2.0 percent, while machinery costs fell by 0.6 percent.
Construction Cost Index for multi-dwelling buildings, excl. wage drift and value-added tax.
The width of the bars represents the production factor’s weight share in percent in the calculation of the Construction Cost Index for multi-dwelling buildings. The height of the bars represents the average price development of each production factor.
| Goods | Change in percent | ||
|---|---|---|---|
| July 2021– August 2021 |
August 2020– August 2021 |
||
| Wood products | +17.9 | +83.3 | |
| Reinforcement steel | 0.0 | +64.5 | |
| Iron and steel* | +1.2 | +37.4 | |
| Concrete products | +0.7 | +12.4 | |
| Plumbing material | +3.9 | +8.9 | |
| Other building materials** | +1.5 | +8.5 | |
| Electric material | +1.0 | +5.3 | |
| Floor material | +0.0 | +4.6 | |
| Material for painting | 0.0 | +4.1 | |
| White goods | +0.0 | +1.5 | |
| Woodwork | +0.2 | +1.3 | |
| Total building materials | +2.0 | +14.4 | |
* Includes reinforcement steel. ** Includes materials for thermal insulation, garbage equipment, gypsum and wood-based boards.
Construction Cost Index for multi-dwelling buildings, excl. VAT
The width of the bars represents the construction material group’s weight share in percent of all construction material in the calculation of the Construction Cost Index for multi-dwelling buildings. The height of the bars represents the average price development of each product category.
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2021-10-15 09:30.
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