Saudi Arabia's annual construction cost growth moderated in July, driven by smaller increases in residential and non-residential expenses, according to data from the General Authority for Statistics published Sunday.
Year-over-year construction costs in the country increased by 2.3% in July, easing from a 2.7% jump in June.
The residential sector construction cost index rose 2.2% year on year, primarily due to a 4.2% hike in equipment rental fees. The index rose 2.6% in June.
Further lifting the index, energy costs climbed 3%, labor expenses expanded by 1.4%, and raw materials rose 1.8%, as material costs were pushed up primarily by higher prices for timber and joinery and general building materials.
Higher equipment rentals, energy, labor and basic material costs also pushed annual non-residential construction expenses up 2.6%, compared with a 3.1% increase in June.
Meanwhile, month-on-month construction costs in the kingdom held steady, following a 0.1% uptick in the previous month, amid stable costs across the residential and non-residential sectors.
