The construction production index in Cyprus in the second quarter of 2021 increased by 26.2% compared to the same quarter in 2020 and amounted to 195.7 points (based on 2015 = 100.00).
At the same time, according to the Statistical Service of the island, the indicator decreased by 4% compared to the corresponding quarter of 2019.
If we look at the types of projects, then in the second quarter of 2021, the index for commercial buildings increased by 26.0%, and for residential construction projects - by 27.6% compared to the same quarter of 2020. Compared to the second quarter of 2019, there is a decrease of 7.7% and an increase of 24.1%, respectively.
As for the PPI in construction for the second quarter of 2021, it was 114.44 points (based on 2015 = 100.00), which is 0.9% more compared to the first quarter of 2021 and 5.4% if we look at the same quarter of 2020. Compared to the second quarter of 2019, the growth was 3.6%.
By type of projects in the second quarter of 2021, the index for commercial buildings increased by 5.5%, and for civil construction projects by 5.2% compared to the corresponding quarter of 2020. Compared to 2019, the growth was 5.8%, and the decline was 3.9%.
As you may know, the producer price index is an indicator of the average level of change in wholesale prices for raw materials, materials and intermediate consumption goods at which national producers sell their goods.
The producer price index covers all stages of production: raw materials, intermediate stages, finished goods, as well as all sectors. Thus, its main difference from the consumer price index is that it covers only goods, not services, and at the wholesale level of their implementation.
The rise in the producer price index may be a harbinger of another rise in property prices.
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