Herewith are the key findings in the latest construction cost indices report released by NCIC:
Civil Engineering Construction Trades Cost Indices (CECTCI)
From Q1 to Q4 of the 2023–2024 fiscal year, the cost of both inputs and outputs for earthworks showed significant increases. Excavation costs for depths ranging from 250mm to 1500mm rose by 19% for inputs and 48% for outputs, while backfilling and disposal costs showed notable increases of 37% for inputs and 48% for outputs. Concrete input costs exhibited mixed trends; concrete classes lower classes decreased slightly while higher classes increased, cement and sand mortar 1:6 also experienced a rise of about 2%. Reinforcement and formwork prices remained stable, with minor increases.
Civil Engineering Construction Input Price Indices (CECIPI)
In the fourth quarter of the 2023–2024 fiscal year, the annual growth rate for civil engineering input prices was 18.3%, with a quarter-on-quarter growth rate of 8.7%. Notably, there was a significant rise in the costs of labor, fuel, and transportation from the third quarter to the fourth quarter of the fiscal year. The realignment of the Malawian kwacha against the United States dollar is the reason for this increase.
Building Construction Trades Cost Indices (BCTCI)
From Q1 to Q4 of the 2023–2024 fiscal year period, the most notable input cost trends include substantial price increases in earthworks, especially for excavations, with up to 48.9% growth in some categories, Excavations 250 – 500mm for instance. Concrete showed varied changes, with lower class Concrete showing a decrease while higher class concrete showing an increase. Roofing materials exhibited consistent growth for input cost over the period. This trend is not much different from the output cost growth for the same period. Overall, inputs and outputs reflect a trend of rising costs, with notable volatility in specific categories.
Building Construction Input Price Indices (BCIPI)
In the fourth quarter of the 2023–2024 fiscal year, the annual growth rate for building construction input prices was 31.2%. The quarter-on-quarter growth rate, comparing Q4 of 2023-2024 to Q3 of 2023-2024, was 8.9%. Similar to the Civil Engineering Construction Input Prices Index (CECIPI), the Building Construction Input Prices Index (BCIPI) experienced a notable increase from the third to the fourth quarter of the fiscal year, particularly for major construction inputs such as labor, fuel, and transportation.
General Construction Input Price Indices (GCIPI)
For the annual change, comparing Q1 of 2023-2024 to Q4 of 2023-2024, the index for general construction was 25.9%. In the fourth quarter, the index increased by 8.9% compared to Q3 of 2023-2024. Construction materials made the largest contribution to the year-on-year growth rate of 25.9%, adding 13.9 percentage points.
Way Forward
The National Construction Industry Council in partnership with National Statistical Office will continue to monitor the construction cost indices and provide updates to the industry on a quarterly basis.
More Information:
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