Go to top button
Back to top

Producer prices in construction or construction costs

PrintDownload

National Reference Metadata in Euro SDMX Metadata Structure (ESMS)

Compiling agency: National Institute of Statistics (Istat)

Need help? Contact the Eurostat user support

Construction producer price index for new residential buildings measures the monthly dynamics of prices paid by the client to the construction company.

11 June 2026

The construction producer price index is an output price index.

It is made up of three components: direct costs (construction costs), overheads and contractors' profit margin (markup).

Direct costs include:

  • labour costs;
  • material costs;
  • hire charges;
  • transport costs.

Overheads include:

  • telecommunication services;
  • security and investigation services;
  • postal and courier services;
  • software production, data processing and other information services;
  • legal and account services;
  • cleaning services.

The dynamics of each service are defined by services producer price indices.

The price measure of the contractor's profit margin is defined as a deflator (ratio between a value index - supply and use gross operating margin - and a quantity index - production in construction index).

Construction producer price indices are secondary statistics: data derived from primary statistics.

The construction price indicators cover CPA 41001, excluding CPA 410014, i.e. new residential buildings excluding residences for communities.

The whole national territory

Month

Accuracy is measured by the distance between provisional and final data.

Index

Producer price index in construction is made up of three components: direct costs (construction costs), overheads and contractors' markup. Direct costs and overheads are lists of items to which a set of appropriate price indices are referred to.

Direct costs dynamic is provided by a set of industrial producer price indices and by price indices derived from administrative data. Overhead dynamic derives from a set of producer price indices in services.

A price measure of a contractor’s profit margin is defined as a deflator. This one is the ratio between a value index (supply and use gross

operating margin) and a quantity index (production in construction index).

Weighting systems are derived from a set of coherent data sources: National Accounts, Structural Business Statistics, Building Permits and, at a detailed level, direct cost items are listed and weighted according to the construction project for a residential building, provided by the Universities of Cassino and Rome Civil Engineering Department. The project refers to a medium residential typology - one multi-family houses (4 floors plus a basement, 9 units for residential use with shared areas, 16 non-residential units). The value-weights structure is price updated every year so as to make the time weights and the index base time coincident

 

Data are collected for other primary purposes.

Type of source: Different types of sources are used. Labour, material costs and transport charges are respectively recorded by Istat surveys on Wages, Producer prices in industry and Services producer prices. Hire charges derive from administrative sources: Regional Civil Engineering Offices and Chambers of Commerce, Industries, Crafts and Agriculture. The Contractor's mark-up is estimated using National account data and data from the Production in construction survey.

Frame on which the source is based: none. Sample or census: none.

Criteria for stratification: not applicable. Threshold values and percentages: not available. Frequency of updating the sample: yearly.

Monthly

Indices are published as preliminary about 30 days after the end of the reference month (t+30) and turn final at t+60.

Construction producer price indices are compiled at the national level only.

Construction producer price series have been available since January 2010.