Construction prices and output: two indices, two different periods

The short version

Two KSH indicators moved in different directions: construction producer prices were 5.3% higher in Q2 2026 than a year earlier, while construction output volume fell 0.7% over the first half of 2026 year on year. One is a change in producer price levels; the other is a volume measure. Their periods and meanings differ, so they cannot be directly added, subtracted or treated as cancelling each other out.

Prices in the second quarter

In its release dated 13 August 2026, KSH reported producer prices up 1.9% from the previous quarter and 5.3% from Q2 2025. Year-on-year changes by division were +5.8% for specialised construction, +5.1% for civil engineering and +4.5% for building construction. These are industry producer-price indices, not quotes for a particular insulation product or contractor.

Output during the first half

The June release reported construction output volume down 0.7% over January–June compared with the same six months of 2025. This is a cumulative first-half measure, not a standalone Q2 figure. A price index and a production-volume index answer different questions: one tracks producer prices, the other the quantity of output.

How buyers should use the figures

Together, the indicators show that nominal price movements and activity can diverge. They do not predict a project’s bill. Compare live quotations with identical product grades, units, quantities, packaging, freight basis, delivery place, payment milestones and validity dates. A national price index is useful context; supplier prices and total landed cost can move differently. For monthly output, contracts and backlog, see the July construction dashboard.

Source and method

Producer prices are from KSH’s Q2 2026 construction-price series; output volume is the cumulative January–June change in the June release. We display separate series and periods, not a shared scale. Check for statistical revisions before relying on the figures.

An index and an offer speak different languages

An index summarises a broad sector trend. It does not show a particular project’s labour mix, material selection, delivery distance or purchase terms. When revising a project budget, ask suppliers which input lines changed and compare dated quotations for the same specification. Freight and packaging may be priced separately, and an offer’s validity period is independent of an annual statistical series. Record product definition, quantity, delivery basis and date so the comparison remains like-for-like.

The simultaneous rise in the Q2 price index and fall in H1 output volume does not prove a causal relationship. It does not show that output changes caused a given project price to rise or fall. Use the series as context, then make the procurement decision from current offers and the actual project requirement.