Construction Cost Index for buildings, November 2023
High interest costs contribute to continued high construction clients’ costs
Statistical news from Statistics Sweden 2023-12-15 8.00
The Construction Cost Index for multi-dwelling buildings increased by 0.4 percent in November 2023 compared with October 2023. The annual rate of change in the Construction Cost Index was 7.1 percent in November, compared with the corresponding month in 2022, up from 6.6 percent in October.
In brief
- The costs of diesel oil decreased by 4.9 percent in November 2023 compared with October 2023.
- Interest costs increased slightly in November 2023 and was 63.6 percent higher compared with the corresponding month in 2022.
- The annual rate for costs of reinforcement steel, wood products and iron and steel including reinforcement steel continues to fall.
| Index | Change in percent | |||
|---|---|---|---|---|
| November | October 2023– November 2023 |
November 2022– November 2023 |
||
| Contractors' costs (82%) | 140.5 | 0.1 | 2.0 | |
| Construction clients' costs (18%) | 195.5 | 1.5 | 28.2 | |
| Total Construction cost index (100%) | 150.4 | 0.4 | 7.1 | |
Changes in the last month
The Construction Cost Index for multi-dwelling buildings increased by 0.4 percent between October and November 2023. In the corresponding period in 2022, the Construction Cost Index decreased by 0.1.
Contactors’ costs increased by 0.1 percent, while construction clients’ costs increased by 1.5 percent. These two groups account for 82 percent and 18 percent, respectively, of the Construction Cost Index.
Costs in the group ‘transport, fuel and electricity’ decreased by 1.3 percent. The decrease was -due to lower costs for diesel oil by 4.9 percent. Contractors’ costs for machinery and overhead costs increased by 0.6 percent and 0.1 percent respectively, while the costs for wages and salaries remained unchanged.
Contractors’ costs for building materials increased by 0.2 percent. The costs of concrete products and wood products increased the most, by 1.5 percent and 1.0 percent respectively. The increase was offset by lower costs of reinforcement steel, iron and steel including reinforcement steel, electric material and other building materials, which decreased by between 0.3 percent and 1.1 percent.
Construction clients’ costs consist of interest and credit costs, costs for plans, and central administration. The rise in construction clients’ costs was mostly due to an increase of 2.9 percent in interest costs. The other construction clients’ costs rose slightly or remained unchanged.
Changes in the last year
The Construction Cost Index for multi-dwelling buildings increased by 7.1 percent between November 2022 and November 2023. Contractors’ costs rose by 2.0 percent, which led to an upward contribution to the Construction Cost Index of 1.6 percentage points. Construction clients’ costs increased by 28.2 percent, which led to an upward contribution to the Construction Cost Index of 5.5 percentage points. The increased construction clients’ costs was mostly due to higher interest costs by 63.6 percent.
Contractors’ costs for machinery and costs for wages and salaries increased by 5.1 percent and 4.4 percent respectively, while overhead costs rose by 4.3 percent between November 2022 and November 2023. Contractors’ costs in the group ‘transport, fuel and electricity’ decreased by 14.0 percent. Within that group, the cost of electricity and diesel oil decreased by 45.5 percent and 8.4 percent respectively. The decrease was offset by higher costs of transport, which increased by 2.7 percent.
Contractors’ costs of building materials increased by 2.3 percent between November 2022 and November 2023. All costs in the building material groups rose, with the exception of reinforcement steel, and iron and steel including reinforcement steel which decreased by 16.5 percent and 8.0 percent respectively, as well as wood products which decreased by 6.7 percent. The costs of other building materials and white goods increased the most, by 9.5 percent and 8.0 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 | ||
|---|---|---|---|
| October 2023– November 2023 |
November 2022– November 2023 |
||
| Other building materials** | ‑0.3 | +9.5 | |
| White goods | +0.0 | +8.0 | |
| Material for painting | +0.0 | +6.2 | |
| Woodwork | +0.2 | +5.9 | |
| Electric material | ‑0.5 | +5.0 | |
| Plumbing material | +0.1 | +4.0 | |
| Concrete products | +1.5 | +3.6 | |
| Floor material | +0.1 | +2.3 | |
| Wood products | +1.0 | ‑6.7 | |
| Iron and steel* | ‑0.8 | ‑8.0 | |
| Reinforcement steel | ‑1.1 | ‑16.5 | |
| Total building materials | +0.2 | +2.3 | |
* 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
2024-01-15 08.00.
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