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Construction Cost Index for buildings, February 2023

Construction Cost Index rose by 16.5 percent in February on an annual basis

Statistical news from Statistics Sweden 2023-03-15 8.00

The Construction Cost Index for multi-dwelling buildings increased by 1.0 percent in February 2023 compared with January 2023. The annual rate of change in the Construction Cost Index was 16.5 percent in February, compared with the corresponding month in 2022, up from 16.3 percent in January.

In brief

  • The highest annual rate of change since September 1974.
  • Interest costs increased by 162.5 percent between February 2022 and February 2023.
  • The annual changes for costs of electricity remained high.
Construction Cost Index for multi-dwelling buildings, excl. wage drift and value-added tax, 2015=100
  Index Change in percent
  February January 2023–
February 2023
February 2022–
February 2023
Contractors' costs (82%) 139.1 0.4 10.1
Construction clients' costs (18%) 175.1 3.3 47.8
Total Construction cost index (100%) 145.6 1.0 16.5

Changes in the last month

The Construction Cost Index for multi-dwelling buildings increased by 1.0 percent between January and February 2023. In the corresponding period in 2022, the Construction Cost Index increased by 0.9 percent.

Contractors’ costs increased by 0.4 percent, while construction clients’ costs increased by 3.3 percent. These two groups accounted for 82 percent and 18 percent, respectively, of the Construction Cost Index.

Contractors’ costs of machinery increased the most, by 3.0 percent. Costs in the group ‘transport, fuel and electricity’ decreased by 0.8 percent. The decrease was due to lower costs for diesel oil by 4.7 percent. Contractors’ overhead costs decreased by 0.8 percent. The costs for wages and salaries remained unchanged.

Contractors’ costs for building materials increased by 0.9 percent. The costs of electric material and plumbing material increased the most. The increase was offset by the fact that the costs of reinforcement steel decreased.

Construction clients’ costs consist of interest and credit costs, costs for plans, and central administration. Interest costs increased by 8.1 percent. Other construction clients’ costs fell slightly.

Changes in the last year

The Construction Cost Index for multi-dwelling buildings increased by 16.5 percent between February 2022 and February 2023. From January 2022 to February 2023, the annual rate of change increased continuously, but decreased during August and November 2022.

Contractors’ costs rose by 10.1 percent, which led to an upward contribution to the Construction Cost Index of 8.4 percentage points. Construction clients’ costs increased by 47.8 percent, which led to an upward contribution to the Construction Cost Index of 8.1 percentage points. The increase of the construction clients’ costs was due to higher interest costs. Interest costs increased by 162.5 percent.

Contractors’ costs in the group ‘transport, fuel and electricity’ increased by 29.7 percent between February 2022 and February 2023. Within that group, the cost of electricity rose the most, by 91.0. Contractors’ costs for machinery and overhead costs increased by 17.5 percent and 5.4 percent respectively, while costs for wages and salaries rose by 2.5 percent.

Contractors’ costs of building materials increased by 12.2 percent between February 2022 and February 2023. All costs in the building material groups rose, with the exception of wood products which decreased by 13.1 percent. The costs of floor material increased the most, by 24.8 percent.

Developments in various production factors February 2022–February 2023

Construction Cost Index for multi-dwelling buildings, excl. wage drift and value-added tax.

Diagram

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.

Changes by product type, February 2023
Goods Change in percent
  January 2023–
February 2023
February 2022–
February 2023
Floor material +0.9 +24.8
Electric material +3.2 +18.8
Reinforcement steel ‑1.3 +18.7
Other building materials** +1.1 +18.1
Plumbing material +2.2 +12.3
White goods +0.1 +12.3
Woodwork +0.4 +11.8
Concrete products +0.2 +11.5
Iron and steel* ‑0.2 +10.9
Material for painting 0.0 +2.5
Wood products ‑0.0 ‑13.1
Total building materials +0.9 +12.2

* Includes reinforcement steel. ** Includes materials for thermal insulation, garbage equipment, gypsum and wood-based boards.

Developments in various production factors February 2022–February 2023

Construction Cost Index for multi-dwelling buildings, excl. wage drift and value-added tax

Diagram

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

2023-04-17 08:00.

Statistical Database

More information is available in the Statistical Database

Feel free to use the facts from this statistical news but remember to state Source: Statistics Sweden.

Statistical agency

Statistics Sweden

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priser@scb.se

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Jonas Jonsson

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