The cost of construction has increased and the price index increased by 4,4% on the month to month rate in Contract Price Adjustment Provisions (CPAP).This is according to data released by Statistics South Africa reveal construction price indices for March 2019. Furthermore, in March the sector experienced a 6,6% increase caused by the producer price index of bituminous mixtures. The producer price index for padlocks, clasps and keys also increased by a steady 5,2% for the month to month rate in this category. The Steel and Engineering Industries Federation of Southern Africa gained a 7,6% increase through the sale of 7,9mm copper rods.
The data also proves that the index for total Construction Input Price Indices (CIPI) increased by 1,1% in the month to month rate, and this is brought by the civil engineering category.A visible 9,1% increase in civil engineering came through the construction input price index, for materials purchased through the category. The data showed that mechanical and electrical engineering input price indices have respectively increased from March 2019 compared to data from March 2018. The construction input price index for material purchases for the whole industry has reached 6,9% between March 2018 and 2019. The biggest contributor to that rate is the sales in sand which accumulated 13,9% in its’ category. The price index for mining, construction plant and equipment reached 5,8% accumulated through the prices of lorries, trucks and vans exceeding 3,5 tons.