The Kingdom’s Construction Cost Index (CCI) rose 0.7% y-o-y in August, due to a 0.8% increase in residential construction costs and a 0.6% rise in non-residential costs, according to data (pdf) from the General Authority for Statistics (Gastat).

The drivers: Residential costs were lifted by a 1.5% increase in labor costs and a 1.2% rise in equipment and machinery rental prices, particularly for a 1.4% increase in rentals with operators. Meanwhile, non-residential activity gained on a 1.1% increase in labor costs and a 1.3% rise in equipment and machinery rental prices, also led by rentals with operators, which rose 1.6%.

ALSO- Energy prices jumped 9.9%, while basic materials prices slipped 0.3% y-o-y, weighed down by a 1.7% decline in metal product prices and a 1.1% drop in other construction materials. For non-residental activity, basic materials fell 0.4% due to a 2.0% decline in other materials and a 1.6% drop in metal products.

On a monthly basis: The CCI inched up 0.1 m-o-m in August, as residential costs rose 0.1% on slightly higher materials and equipment rental prices. Non-residential costs were flat compared to July, with labor and energy prices holding steady.

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