Construction Cost Index for buildings, October 2022
Construction Cost Index rose by 15.3 percent in October on an annual basis
Statistical news from Statistics Sweden 2022-11-15 8.00
The Construction Cost Index for multi-dwelling buildings increased by 1.3 percent in October 2022 compared with September 2022. The annual rate of change in the Construction Cost Index was 15.3 percent in October, compared with the corresponding month in 2021, up from 14.6 percent in September.
In brief
- The highest annual rate of change since November 1974.
- The annual changes for interest costs remained high
- The annual changes for costs of electricity and diesel oil remained high.
- The annual changes for costs of reinforcement steel, iron and steel, including reinforcement steel and floor material remained high.
| Index | Change in percent | |||
|---|---|---|---|---|
| October | September 2022– October 2022 |
October 2021– October 2022 |
||
| Contractors' costs (82%) | 138.2 | 1.1 | 12.4 | |
| Construction clients' costs (18%) | 150.9 | 2.0 | 29.5 | |
| Total Construction cost index (100%) | 140.5 | 1.3 | 15.3 | |
Changes in the last month
The Construction Cost Index for multi-dwelling buildings increased by 1.3 percent between September and October 2022. In the corresponding period in 2021, the Construction Cost Index increased by 0.6 percent.
Contractors’ costs increased by 1.1 percent, while construction clients’ costs increased by 2.0 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 14.5 percent. The increase was mostly due to higher costs for electricity by 44.1 percent (compared with July, which is the latest available comparison data for electricity) and higher costs for diesel oil by 10.3 percent. Machinery and contractors’ overhead costs increased by 2.6 percent and 0.5 percent respectively, while costs for wages and salaries and remained unchanged.
Contractors’ costs for building materials decreased by 0.1 percent. The costs of wood products decreased the most, by 7.4 percent. The decrease was offset by the fact that the costs of other building materials and woodwork rose by 1.6 percent and 0.7 percent respectively.
Construction clients’ costs consist of interest and credit costs, costs for plans, and central administration. Interest costs increased by 4.3 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 15.3 percent between October 2021 and October 2022. During 2022, the annual rate of change increased continuously until July 2022 but decreased during August 2022 and then increased again during September and October 2022.
Contractors’ costs rose by 12.4 percent, which led to an upward contribution to the Construction Cost Index of 10.2 percentage points. Construction clients’ costs increased by 29.5 percent, which led to an upward contribution to the Construction Cost Index of 5.1 percentage points. The increase of the construction clients’ costs was mainly due to higher interest costs. Interest costs increased by 94.5 percent.
Contractors’ costs in the group ‘transport, fuel and electricity’ increased by 36.7 percent between October 2021 and October 2022. Within that group, the cost of electricity and diesel oil rose the most, by 99.4 percent and 44.0 percent respectively. Contractors’ costs for machinery and overhead costs increased by 14.6 percent and 6.5 percent respectively, while costs for wages and salaries rose by 2.3 percent.
Contractors’ costs of building materials increased by 16.6 percent between October 2021 and October 2022. All costs in the building material groups rose, with the exception of wood products which decreased by 7.4 percent. The costs of reinforcement steel increased the most, by 44.7 percent. The cost of floor material and iron and steel including reinforcement steel increased by 27.5 percent and 27.0 percent respectively.
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 | ||
|---|---|---|---|
| September 2022– October 2022 |
October 2021– October 2022 |
||
| Reinforcement steel | 0.0 | +44.7 | |
| Floor material | +0.3 | +27.5 | |
| Iron and steel* | ‑0.1 | +27.0 | |
| Other building materials** | +1.6 | +21.2 | |
| Electric material | +0.1 | +20.8 | |
| Concrete products | ‑0.3 | +13.9 | |
| Woodwork | +0.7 | +13.9 | |
| Plumbing material | +0.3 | +12.8 | |
| White goods | +0.7 | +10.7 | |
| Material for painting | ‑0.0 | +8.1 | |
| Wood products | ‑7.4 | ‑7.4 | |
| Total building materials | ‑0.1 | +16.6 | |
* 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
2022-12-15 08:00.
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