Construction Cost Index for buildings, December 2020
Construction costs rose in December
Statistical news from Statistics Sweden 2021-01-15 9.30
The Construction Cost Index for multi-dwelling buildings rose by 0.6 percent between November and December 2020. The annual rate of change in construction costs was 1.9 percent in December compared with 1.3 percent in November.
| Index | Change in percent | |||
|---|---|---|---|---|
| December | November 2020– December 2020 |
December 2019– December 2020 |
||
| Contractors´costs (82%) | 113.9 | 0.9 | 1.3 | |
| Construction clients’ costs (18%) | 114.3 | ‑0.8 | 4.7 | |
| Total Construction cost index (100%) | 113.9 | 0.6 | 1.9 | |
Changes in the last month
The Construction Cost Index for multi-dwelling buildings increased by 0.6 percent in December 2020 compared with November 2020. In the corresponding period in 2019, the Construction Cost Index decreased by 0.1 percent. Contractors’ costs increased by 0.9 percent, while construction clients’ costs decreased by 0.8 percent. These two groups accounted for 82 percent and 18 percent of the Construction Cost Index, respectively.
Under contractors’ costs, wages and salaries, which increased by 2.7 percent from November to December, were the main contributors to the increase. Contractors’ costs in the group ‘transport, fuel and electricity’ rose by 0.5 percent. The costs of building materials rose by 0.2 percent. Iron and steel, including reinforcement steel, accounted for the largest price increase in the building materials group machinery costs and overhead costs remained unchanged.
Construction clients’ costs consist of interest and credit costs, costs for plans, and central administration. The decrease in construction clients’ costs was due to lower interest costs.
Changes in the last year
The Construction Cost Index for multi-dwelling buildings increased by 1.9 percent between December 2019 and December 2020. In early 2020, collective agreements were prolonged and most of them expired in December. In December, new collective agreements had an upward effect on the annual rate of the Construction Cost Index. Wages and salaries accounted for about 40 percent of the construction costs.
Construction clients’ costs increased by 4.7 percent between December 2019 and December 2020, which led to an upward contribution of 0.8 percentage points for the total index in the same period. This increase was mainly due to higher interest costs. Contractors’ costs rose by 1.3 percent, which led to an upward contribution of 1.1 percentage points to the total increase in the Construction Cost Index.
Between December 2019 and December 2020, contractors’ costs for wages and salaries and overhead costs increased by 2.9 percent and 1.8 percent respectively. Contractors’ costs in the group ‘transport, fuel and electricity’ decreased by 2.6 percent and machinery costs decreased by 2.1 percent.
Contractors’ costs of building materials increased by 1.2 percent in December 2020 on an annual basis. Wood products and reinforcement steel accounted for the largest price increase in the building materials group, while the cost of woodwork decreased.
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 | ||
|---|---|---|---|
| November 2020– December 2020 |
December 2019– December 2020 |
||
| Wood products | +0.1 | +4.2 | |
| Reinforcement steel | +3.2 | +3.4 | |
| Material for painting | 0.0 | +3.0 | |
| White goods | +0.0 | +3.0 | |
| Electric material | ‑0.3 | +2.8 | |
| Iron and steel* | +1.2 | +2.0 | |
| Concrete products | +0.6 | +1.9 | |
| Plumbing material | +0.0 | +1.8 | |
| Floor material | ‑0.0 | +1.5 | |
| Other building materials** | +0.0 | +0.5 | |
| Woodwork | ‑0.3 | ‑4.8 | |
| Total building materials | +0.2 | +1.2 | |
* 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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