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MNI BRIEF: Building Costs Soar In German Regions

(MNI) Frankfurt

Underlining the burgeoning costs across Europe in the building sector, the German state of Saxony notes costs for the construction of new buildings rose 15.7% year-on-year in August, the highest annual increase on record in the region. The magnitude of price rises in recent months is highlighted by comparison to the previous quarterly reporting period in May, when prices rose by 'just' 8.8% y/y.

A broader picture of price pressure on the building sector in Germany and across Europe will be available later Wednesday, when the September regional construction PMI data are released.

The costs for the industrial sector across the EZ, closely watched by the ECB, rose to a record high in August, according to the data published by Eurostat Tuesday (MNI BRIEF: EZ Factory Gate Prices At Record High ).

MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
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MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
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