According to the Statistical Service of Cyprus, in the third quarter of 2023, the island state's construction volume increased. At the same time, the prices for the construction of various objects also increased.
The Construction Sector Production Index increased by 7.9% compared to the same quarter of 2022, reaching 186.29 points (on a 2015 basis = 100.00).
Looking by project type, the index for commercial buildings increased by 9.4%, while the index for residential construction projects increased by 0.3%.
As for the Construction Producer Price Index for the third quarter of 2023, it was 137.27 points (2015 basis = 100.00), a 6% increase from the third quarter of 2022 and a 1.7% increase from the second quarter of 2023.
By project type, the index for commercial buildings increased by 1.2% and civil engineering projects increased by 24.3% in the third quarter of 2023 compared to the corresponding quarter of 2022.
As a reminder, the producer price index measures the average change in the wholesale prices of raw materials, inputs, and intermediate consumption goods at which domestic producers sell their commodities.
The producer price index covers all stages of production: raw materials, intermediate stages, finished goods, and 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 realization. A rise in the producer price index may be a harbinger of another rise in real estate prices.