Producer price index for renovation and maintenance

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Prices and Consumption, Economic Statistics
Peter Fink-Jensen
+45 21 34 76 92

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Producer price index for renovation and maintenance 2024

The purpose of the Producer price index for renovation and maintenance is to track the development of producer prices of renovation and maintenance tasks performed by Danish construction and craftsman companies. This covers the prices of services incl. the producer's direct costs and their profits, but excl. VAT. The statistics has been produced since 2017 with data for 2014 and onwards. It is used primarily to evaluate price developments in the construction industry, and to regulate prices and contracts.

Statistical presentation

The producer price index for renovation and maintenance shows the yearly trends in the prices related to housing in Denmark. The prices are related to first commercial transactions. The first commercial transaction refers to the transaction between the requester and the producer, excl. VAT. The index reflects price changes for the production of refurbishment and maintenance services, i.e. the price the household pays a company to perform a standard refurbishment and maintenance task, such as a carpenter changing a window frame or a plumber installing a toilet.

Statistical processing

For the Producer price index for renovation and maintenance approximately 3,000 prices are collected from selected companies in Denmark. Prices are collected digitally. The index is calculated in a hierarchical system, where the first calculation is made on the most detailed level (basic indices). The detailed indices are subsequently weighted together to form aggregated sub indices, which are used to calculate the main index.

Relevance

Producer price index for renovation and maintenance is used primarily to evaluate price developments in the construction industry, and to regulate prices and contracts. It is also used as a deflator in the Danish National Accounts for constant price calculations. User satisfaction levels have not been determined.

Accuracy and reliability

The statistics is based on 3,000 prices from six craftsman trades. Prices are reported by businesses, which are selected according to turnover to achieve the highest possible coverage. As there are large differences between the trades, they are treated separately with separate samples. It is estimated that each trade has a coverage of at least 30 pct., and that the price development in each sample represents the development in the population at large.

As the samples are not randomly selected the sampling error cannot be measured. However, overall, the index is assessed to be of high quality.

Timeliness and punctuality

The statistics are published yearly, approximately three months after the end of the reference period. Publications are released on time according to announced release times.

Comparability

The statistics follows international standards and is therefore comparable with similar statistics from other European countries. A time series from 2014 until today is available.

Accessibility and clarity

Producer price index for renovation and maintenance is published in the StatBank under the subject Producer price index and on the subject page Indices for the construction sector. In the StatBank the statistic is listed as PRIS91.