Construction Cost Index for buildings, July 2022
Construction Cost Index rose by 1.4 percent in July
Statistical news from Statistics Sweden 2022-08-15 8.00
The Construction Cost Index for multi-dwelling buildings increased by 1.4 percent in July 2022 compared with June 2022. The annual rate of change in the Construction Cost Index was 14.6 percent in July, compared with 2021, up from 14.4 percent in June.
In brief
- The highest annual rate of change since June 1980.
- Higher interest costs contributed to the Construction clients’ costs increasing by 6.2 percent compared with the previous month.
- The annual changes for costs of electricity and diesel oil remained high.
- The annual changes for costs of reinforcement steel and iron and steel, including reinforcement steel remained high.
| Index | Change in percent | |||
|---|---|---|---|---|
| July | June 2022– July 2022 |
July 2021– July 2022 |
||
| Contractors' costs (82%) | 135.7 | 0.4 | 13.1 | |
| Construction clients' costs (18%) | 141.4 | 6.2 | 21.9 | |
| Total Construction cost index (100%) | 136.7 | 1.4 | 14.6 | |
Changes in the last month
The Construction Cost Index for multi-dwelling buildings increased by 1.4 percent between June and July 2022. In the corresponding period in 2021, the Construction Cost Index increased by 1.3 percent.
Contractors’ costs increased by 0.4 percent, while construction clients’ costs rose by 6.2 percent. These two groups accounted for 82 percent and 18 percent, respectively, of the Construction Cost Index.
Contractors’ costs for costs in the group ‘transport, fuel and electricity’ increased the most, by 3.3 percent. The increase was mostly due to higher costs for electricity by 10.7 percent (compared with April, which is the latest available comparison data for electricity). Contractors’ overhead costs increased by 0.5 percent, while costs for wages and salaries and machinery remained unchanged.
Contractors’ costs for building materials increased by 0.2 percent. All costs in the building material groups rose or remained unchanged, with the exception of wood products, reinforcement steel, iron and steel, including reinforcement steel and concrete products, which decreased. The costs of white goods increased the most, by 4.5 percent.
Construction clients’ costs consist of interest and credit costs, costs for plans, and central administration. Interest costs increased by 17.8 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 14.6 percent between July 2021 and July 2022. This is the highest annual rate of change since June 1980. The increase during the last twelve-month period was mainly due to higher building material costs, but also transport, fuel and electricity as well as construction clients’ costs had a major impact.
Contractors’ costs rose by 13.1 percent, which led to an upward contribution to the Construction Cost Index of 10.8 percentage points. Construction clients’ costs increased by 21.9 percent, which led to an upward contribution to the Construction Cost Index of 3.8 percentage points. The increase of the construction clients’ costs was mainly due to higher interest costs.
Contractors’ costs in the group ‘transport, fuel and electricity’ increased by 30.8 percent between July 2021 and July 2022. Within that group, the cost of electricity and diesel oil rose the most, by 68.9 percent and 59.2 percent respectively. Contractors’ overhead costs and costs for machinery and increased by 5.7 percent and 5.3 percent respectively, while costs for wages and salaries rose by 2.3 percent.
Contractors’ costs of building materials increased by 20.7 percent between July 2021 and July 2022. In the group ‘building materials’, the costs of reinforcement steel and iron and steel, including reinforcement steel remained high, but they have decreased after April 2022. The costs of reinforcement steel and iron and steel, including reinforcement steel increased by 50.7 percent and 35.6 percent respectively. Costs in other building material groups also increased.
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 | ||
|---|---|---|---|
| June 2022– July 2022 |
July 2021– July 2022 |
||
| Reinforcement steel | ‑1.6 | +50.7 | |
| Iron and steel* | ‑0.7 | +35.6 | |
| Other building materials** | +1.5 | +24.9 | |
| Floor material | +2.6 | +23.2 | |
| Wood products | ‑1.7 | +23.1 | |
| Electric material | +0.6 | +18.5 | |
| Concrete products | ‑0.1 | +17.9 | |
| Woodwork | +0.2 | +15.6 | |
| White goods | +4.5 | +12.7 | |
| Plumbing material | +0.3 | +11.8 | |
| Material for painting | 0.0 | +7.3 | |
| Total building materials | +0.2 | +20.7 | |
* 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.
Next publishing will be
2022-09-15 08:00.
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