Construction Cost Index for buildings, October 2023
The annual rate for the Construction Cost Index decreased to 6.6 percent in October
Statistical news from Statistics Sweden 2023-11-15 8.00
The Construction Cost Index for multi-dwelling buildings increased by 0.4 percent in October 2023 compared with September 2023. The annual rate of change in the Construction Cost Index was 6.6 percent in October, compared with the corresponding month in 2022, down from 7.5 percent in September.
In brief
- The costs for electricity decreased by 12.9 percent in October 2023 compared with July 2023.
- Interest costs increased by 63.2 percent between October 2022 and October 2023.
- The annual rate for costs of reinforcement steel, wood products and iron and steel including reinforcement steel continues to fall.
| Index | Change in percent | |||
|---|---|---|---|---|
| October | September 2023– October 2023 |
October 2022– October 2023 |
||
| Contractors' costs (82%) | 140.4 | ‑0.1 | 1.6 | |
| Construction clients' costs (18%) | 192.6 | 2.0 | 27.7 | |
| Total Construction cost index (100%) | 149.8 | 0.4 | 6.6 | |
Changes in the last month
The Construction Cost Index for multi-dwelling buildings increased by 0.4 percent between September and October 2023. This increase was due to higher construction clients’ costs, having increased by 2.0 percent. The increase was offset by the fact that contractors’ costs decreased by 0.1 percent. These two groups account for 18 percent and 82 percent, respectively, of the Construction Cost Index.
Construction clients’ costs consist of interest and credit costs, costs for plans, and central administration. The rise was mostly due to an increase of 3,8 percent in interest costs. All construction clients’ costs rose slightly or remained unchanged.
Costs in the group ‘transport, fuel and electricity’ decreased by 3.0 percent. The decrease was mostly due to lower costs for electricity by 12.9 percent (compared with July, which is the latest available comparison data for electricity). Contractors’ overhead costs increased by 0.2 percent, while the 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 slightly, with the exception of concrete products, wood products and plumbing material which decreased. The costs of woodwork increased the most, by 2.2 percent, while the costs of concrete products decreased the most, by 1.1 percent.
Changes in the last year
The Construction Cost Index for multi-dwelling buildings increased by 6.6 percent between October 2022 and October 2023. The annual rate of change was lower in October 2023 compared with September 2023 and has been declining since February 2023, with the exception of August 2023.
Contractors’ costs rose by 1.6 percent, which led to an upward contribution to the Construction Cost Index of 1.3 percentage points. Construction clients’ costs increased by 27.7 percent, which led to an upward contribution to the Construction Cost Index of 5.3 percentage points. The increase of the construction clients’ costs was mostly due to higher interest costs by 63.2 percent.
Contractors’ costs for machinery and overhead costs increased by 6.2 percent and 4.2 percent respectively, while costs for wages and salaries rose by 4.4 percent between October 2022 and October 2023. Contractors’ costs in the group ‘transport, fuel and electricity’ decreased by 13.5 percent. Within that group, the cost of electricity and diesel oil decreased by 45.5 percent and 6.7 percent respectively.
Contractors’ costs of building materials increased by 1.3 percent between October 2022 and October 2023. All costs in the building material groups rose, with the exception of reinforcement steel and wood products which decreased by 20.5 percent and 11.4 percent respectively, as well as iron and steel including reinforcement steel which decreased by 10.0 percent. The costs of other building materials and white goods increased the most, by 8.9 percent and 8.6 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 2023– October 2023 |
October 2022– October 2023 |
||
| Other building materials** | +1.3 | +8.9 | |
| White goods | +0.6 | +8.6 | |
| Material for painting | +1.3 | +6.2 | |
| Woodwork | +2.2 | +6.0 | |
| Electric material | +0.3 | +4.9 | |
| Plumbing material | ‑0.3 | +4.3 | |
| Floor material | +0.7 | +2.4 | |
| Concrete products | ‑1.1 | +2.3 | |
| Iron and steel* | +0.1 | ‑10.0 | |
| Wood products | ‑0.5 | ‑11.4 | |
| Reinforcement steel | +0.1 | ‑20.5 | |
| Total building materials | +0.2 | +1.3 | |
* 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
2023-12-15 08.00.
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