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Ìý% change (Jan 2005-Jan 2006)Direction of change
Consumer pricesÌýÌý
Consumer Prices Index (CPI)1.9DOWN
The annual percentage change measured by the Consumer Prices Index has eased back from its peak of 2.5% last September to a level close to the chancellor’s target inflation figure. Most commentators believe inflation is likely to stay at this level for the remainder of this year.
Industry generallyÌýÌý
Materials and fuels purchased by manufacturing industry16.2UP
Materials and fuels purchased by manufacturing industry excluding food, beverages, tobacco and petroleum industries10.4UP
Output prices of manufactured products2.9UP
Output prices of manufactured products excl. food, beverages, tobacco and petroleum1.6UP
Crude oil prices continue to drive industry’s input prices. The annual increase in materials and fuels purchased by manufacturing industry reached 18.1% in December, the highest level since June 1980. The price of crude oil has risen more than 50% over the past year but the price of fuel (gas and electricity) has risen by more than 60%. Consequently input costs for manufacturing industry excluding food, beverages, tobacco and petroleum industries have also been on a sharply rising trend over the past 12 months and reached 12.2% in December.
Input prices faced by particular industries over the past year include:
Mining and quarrying products13.90%
Wood and wood products5.50%
Rubber and plastic products5.90%
Fabricated metal products6.40%
Electrical machinery and apparatus6.40%
The principal commodities driving the input price rises over the past year have been:
Electricity51%
Gas90%
Crude oils54%
Imported non-ferrous metals27%
Output prices of manufactured products excluding food, beverages, tobacco and petroleum products rose in the second half of 2004, trod water in the first half of 2005 and have been edging up since. Faced with the rising trend of input prices, it seems likely that output prices will rise further.
Ìý% change (Jan 2005-Jan 2006)Direction of change
Construction materials generally
Non-housing new work1.3LEVEL
New housing3.9LEVEL
Repair and maintenance3.2 UP
Mechanical services generally
Non-housing6.1DOWN
Housing only7.3DOWN
Electrical services materials0.7DOWN
Ìý% change (Jan 2005-Jan 2006)
Gas oil 36.9
Copper tubes and fittings 31.7
Lead, zinc and tin 28.7
Imported hardwood 11.1
Asphalt products 11
DERV fuel 10.6
Cement 9.5
Clay bricks and tiles 7.7
Aluminium plates, sheets and strips 7.2
Plastic pipes and fittings (rigid) 6.5
Ready mixed concrete 6
Crushed rock –6.5
Recovered secondary raw materials Ìý
(such as scrap metal) –7.2
Concrete reinforcing bars –13.6
Fabricated structural steel –15.2
Steel sheet piling –16.8
Sources: ONS and DTI (Jan 2006 figures provisional)
Wage agreement summary
The following table summarises the wage agreements currently in force for the principal wage fixing bodies within the construction industry
OperativesAgreement bodyCurrent basic hourly rateEffective sinceDetails in:Date of next review:
Builders and civil engineering operativesConstruction IndustryJoint CouncilCraft rate: £9/hour27-Jun-05Cost Update 3 June 200501/06/2006 (under negotiation)
ÌýºÚ¶´ÉçÇø & Allied TradesJoint Industrial Council(BATJIC)General operative: £6.77/hour13-Jun-05Spon’s Architects’ and Builders’ Price Book 200612/06/2006 (under negotiation)
ÌýÌýAdvanced craft: £9.25/hourÌýCost Update 3 June 2005Ìý
ÌýÌýAdult general operative: £6.80/hourÌýSpon’s Architects’ and Builders’ Price Book 2006Ìý
PlumbersThe Joint Industry Board for Plumbing Mechanical Engineering Services in England and WalesAdvanced plumber: £11.20/hour02-Jan-06See below1 January 2007 (basic rates will rise 3.5%)
ÌýScottish and Northern Ireland Joint Industry Board for the Plumbing IndustryAdvanced plumber: £10.15/hour30-May-05Spon’s Architects ‘ and Builders’ Price Book 20065 June 2006 (rates will rise 3.1%)
H&V operativesJoint Conciliation Committee of the Heating, Ventilating and Domestic Engineering IndustryCraftsman: £10/hour03-Oct-05Cost Update 9 September 2005 / Spon’s Mechanical and Electrical Services Price Book 2006Oct-06
ÌýÌýInstaller: £9.07/hourÌýÌýÌý
ElectriciansThe Joint Industry Board for the Electrical Contracting IndustryApproved electrician: £11.98/hour09-Jan-06Spon’s Mechanical and Electrical Services Price Book 2006 See below8 January 2007(basic rates will rise by.5%)
ÌýScottish Joint IndustryBoard for the ElectricalContracting IndustryApproved electrician: £11.98/hour 09-Jan-06See below8 January 2007(basic rates will rise by 5%)
Grade National standard rates London rates
ÌýTransport provided Own transportTransport providedOwn Transport
ÌýÌýÌýÌýÌý
Technician (or equivalent specialist grade) 12.8413.4914-Jan-0015.11
Approved electrician (or equivalent specialist grade) ÌýÌýÌýÌý
Electrician (or equivalent specialist grade) 10.3911.0511.6412.38
Electrical improver / Senior graded electrical trainee 9.359.9410-Jan-0011.13
Labourer/adult trainee 8.258.8609-Jan-009.92
Adult trainee (under 21) 6.196.656.937.45