Construction Cost Index for buildings, December 2022
Construction Cost Index rose by 15.6 percent in December on an annual basis
Statistical news from Statistics Sweden 2023-01-16 8.00
The Construction Cost Index for multi-dwelling buildings increased by 0.4 percent in December 2022 compared with November 2022. The annual rate of change in the Construction Cost Index was 15.6 percent in December, compared with the corresponding month in 2021, up from 15.2 percent in November.
In brief
- The highest annual rate of change since October 1974.
- The annual changes for wood products continued to fall.
- Interest costs increased by 138.0 percent between December 2021 and December 2022.
| Index | Change in percent | ||||
|---|---|---|---|---|---|
| December | November 2022– December 2022 |
December 2021– December 2022 |
|||
| Contractors' costs (82%) | 137.0 | ‑0.5 | 10.9 | ||
| Construction clients' costs (18%) | 159.0 | 4.3 | 39.0 | ||
| Total Construction cost index (100%) | 141.0 | 0.4 | 15.6 | ||
Changes in the last month
The Construction Cost Index for multi-dwelling buildings increased by 0.4 percent between November and December 2022. In the corresponding period in 2021, the Construction Cost Index increased by 0.1 percent.
Contractors’ costs decreased by 0.5 percent, while construction clients’ costs increased by 4.3 percent. These two groups accounted for 82 percent and 18 percent, respectively, of the Construction Cost Index.
Contractors’ costs in the group ‘transport, fuel and electricity’ decreased by 1.6 percent. The costs for diesel oil decreased the most, by 7.1 percent. The cost of machinery fell by 0.1 percent, while costs for wages and salaries remained unchanged. Contractors’ overhead costs increased by 0.4 percent.
Contractors’ costs for building materials decreased by 0.9 percent. The costs of reinforcement steel and iron and steel including reinforcement steel decreased the most, by 7.3 percent and 4.1 percent respectively. The decrease was offset by the fact that the costs of floor material, white goods, other building materials and woodwork rose by between 0.3 and 1.2 percent.
Construction clients’ costs consist of interest and credit costs, costs for plans, and central administration. Interest costs increased by 10.1 percent. Other construction clients’ costs rose slightly or remained unchanged.
Changes in the last year
The Construction Cost Index for multi-dwelling buildings increased by 15.6 percent between December 2021 and December 2022. During 2022, the annual rate of change increased continuously, but decreased during August and November 2022.
Contractors’ costs rose by 10.9 percent, which led to an upward contribution to the Construction Cost Index of 9.1 percentage points. Construction clients’ costs increased by 39.0 percent, which led to an upward contribution to the Construction Cost Index of 6.5 percentage points. The increase of the construction clients’ costs was mainly due to higher interest costs. Interest costs increased by 138.0 percent.
Contractors’ costs in the group ‘transport, fuel and electricity’ increased by 33.2 percent between December 2021 and December 2022. Within that group, the cost of electricity and diesel oil rose the most, by 99.4 percent and 28.2 percent respectively. Contractors’ costs for machinery and overhead costs increased by 16.0 percent and 6.7 percent respectively, while costs for wages and salaries rose by 2.3 percent.
Contractors’ costs of building materials increased by 13.7 percent between December 2021 and December 2022. All costs in the building material groups rose, with the exception of wood products which decreased by 11.6 percent. The costs of floor material and reinforcement steel increased the most, by 28.4 percent and 27.1 percent respectively.
Construction Cost Index for multi-dwelling buildings, excl. wage drift and value-added tax.
Construction Cost Index for multi-dwelling buildings
| Goods | Change in percent | ||
|---|---|---|---|
| November 2022– December 2022 |
December 2021– December 2022 |
||
| Floor material | +1.2 | +28.4 | |
| Reinforcement steel | ‑7.3 | +27.1 | |
| Electric material | ‑0.0 | +19.2 | |
| Iron and steel* | ‑4.1 | +18.0 | |
| Other building materials** | +0.4 | +17.7 | |
| Concrete products | ‑0.9 | +12.7 | |
| Plumbing material | ‑0.3 | +12.0 | |
| White goods | +0.4 | +11.8 | |
| Woodwork | +0.3 | +11.4 | |
| Material for painting | +0.0 | +3.8 | |
| Wood products | ‑1.9 | ‑11.6 | |
| Total building materials | ‑0.9 |
+13.7
|
|
* Includes reinforcement steel. ** Includes materials for thermal insulation, garbage equipment, gypsum and wood-based boards.
Construction Cost Index for multi-dwelling buildings, excl. wage drift and value-added tax
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.
Next publishing will be
2023-02-15 08:00.
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