According to the latest data released by the French National Institute of Statistics and Economic Studies (INSEE), construction costs in France experienced a 1.3% increase in the first quarter of 2023 compared to the previous quarter. This follows a modest growth of 0.1% in the last quarter of 2022. The rise in production costs was observed across various sectors within the construction industry.
Specialized construction works saw a significant acceleration in costs, with a 1.5% increase in the first quarter of 2023, up from 0.7% in the previous quarter. Similarly, the construction of buildings experienced a notable surge, with costs rising by 2.0% compared to a 0.1% increase in the last quarter. This upward trend can be attributed to a rebound in material costs for building construction, which increased by 3.8% after experiencing a decline of 1.9%. The price hike in steel products contributed to this increase.
In contrast, the costs of production in civil engineering rebounded by 0.3% after a decline of 2.6% in the previous quarter. This was driven by higher equipment costs for civil engineering, which rose by 3.7% following a 0.4% increase.
On an annual basis, construction production costs showed a slowdown, growing by 6.3% in the first quarter of 2023 compared to a growth rate of 7.7% in the previous quarter. This deceleration was particularly pronounced in civil engineering, where costs increased by 3.9% after significant growth rates of 8.0% in the fourth quarter of 2022 and 14.4% in the third quarter of 2022. The construction of buildings and specialized construction works also experienced a slight deceleration, with cost increases of 7.0% and 6.7%, respectively, compared to higher growth rates in previous quarters.
These cost variations in the construction industry are important indicators for the overall economic landscape of France, reflecting the dynamics of the sector and potential implications for housing, infrastructure, and related industries.
https://www.insee.fr/fr/statistiques/7636156#tableau-icp-construction-g2-fr