2010.07.2004:23:00UTC+00Estonia Q2 Construction Prices Decrease At Slower Pace

Estonia's construction prices decreased at a slower pace in the second quarter.

The construction price index dropped 3.4% on an annual basis in the second quarter, slower than a 7.5% decline in the previous quarter, a report by the Statistics Estonia showed on Tuesday. The price index decreased for the sixth consecutive quarter. Construction prices were down 10% in the fourth quarter of 2009.

The construction price index was mainly influenced by a 6.4% fall in labor costs in the second quarter from the previous year, the statistical office said. At the same time, prices of building machines slipped 1.4%, while prices of building materials slipped 2.3%. Building material prices was mainly driven by the fall in the prices of insulation products and finishing materials.

The price index of detached housed fell 2.7% annually in the second quarter, while index pf blocks of flats dropped 3.4%. Construction prices of industrial building slipped 3.3% and office building fell 3.6%.

Sequentially, the construction price index dropped 0.1% in the second quarter, mainly due to decrease in labor costs. Price index of building machines fell 0.1% and building materials remained unchanged. Labor costs slipped 0.4%. Meanwhile, the repair and reconstruction work price index declined 0.1% on a sequential basis in the second quarter and fell 3.5% compared to the previous year.

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