Civil construction cost increased by 0.30% in January

Section: Economic Statistics | Carmen Lucia Nery

February 07, 2020 09h00 AM | Last Updated: February 07, 2020 04h39 PM

With a hike in January, construction costs hit R$ 1,162.24  by square meter 
Photo: Pixabay

The National Index of Civil Construction (Sinapi), released today (07) by the IBGE, changed by 0.30% in January, being above the December 2019 rate (0.22%). The indicator measures the national cost of the construction sector by square meter, which hit R$ 1,162.24, being R$ 609.39 relative to materials and R$ 552.85 to workforce.

Materials changed by 0.62%, having recorded significant increases against December 2019 (-0.13%), and the same month a year ago (0.19%). Manpower recorded a decrease of 0.06%, a decrease against December 2019 (0.59%). In comparison with January a year ago (0.68%), there was a more significant decrease due to the occurrence of collective bargaining agreements. 

“In January last year there were three instances of collective bargaining, with a very significant effect in Minas Gerais, where the agreement was postponed from December 2018 to January 2019. On the other hand, there was no occurrence in January 202, which resulted in a decrease in workforce costs”, says the manager of Sinapi, Augusto Oliveira.

Cumulative indexes in 12 months hit 4.99% (materials) and 2.71% (workforce), respectively.

Construction costs rose in all the Major Regions in January. The North, with increase recorded by material in all the states, recorded the biggest regional change, 0.54%, in the first month of the year. The other Major Regions recorded the following results: 0.46% (Northeast), 0.17% (Southeast), 0.05% (South) and 0.45% (Central West).

As for construction costs by Major Region, figures, in January, by square meter, were: R$ 1,175.74 in the North); R$ 1,072.56 in the Northeast); R$ 1,210.88 in the Southeast); R$ 1,223.27 in the South) and R$ 1,171.04 in the Central West.

“The cost of materials has been affected by changes in the ICMS legislation in the state of Mato Grosso. That had a general impact on products not only in the state, but also in the region and in Brazil”, Mr. Oliveira says.