According to new data from the Cyprus Statistical Service, the Construction Producer Price Index reached 120.6 points (on a 2015 basis = 100.00) in the third quarter of 2024, an increase of 0.7% compared to the second quarter of 2024 and 3.7% compared to the same quarter of 2023.
By type of project, the index rose by 1.4% for commercial building and by 6.9% for civil engineering. In turn, from January to September 2024, the output price index for construction increased by 4.3 per cent compared with the same period in 2023.
Recall that the producer price index is an indicator of the average level of change in the wholesale prices of raw materials, materials and intermediate goods at which national producers sell their goods.
The producer price index covers all stages of production: raw materials, intermediate goods, finished goods and all sectors. Thus, its main difference from the consumer price index is that it covers only goods and not services, and at the wholesale level of their realisation. An increase in the producer price index may herald a further increase in property prices.
Statistics Cyprus also noted that in the third quarter of 2024, the construction production index reached 110.92 units (based on 2015 = 100.00), an increase of 6.5 per cent compared to the same period in 2023.
By type of project, in the third quarter of 2024, compared to the corresponding quarter of 2023, the index for commercial buildings increased by 8.4% and the index for civil engineering projects increased by 14.6%. Finally, from January to September 2024, the Construction Production Index increased by 5.2 per cent.
The quarterly construction output index is a tool for monitoring short-term changes in construction activity. It is a volume measure that approximates changes in value added at constant prices. It can therefore be seen as an indicator of the growth rate of the construction sector.