Rise of cement, collective work agreement in SP rise costs of civil construction by 0.49% in July

Section: Economic Statistics | Carmen Nery

August 07, 2020 09h00 AM | Last Updated: August 07, 2020 11h38 AM

Generalized rise in material contributed to increase costs Photo: Helena Pontes/IBGE News Agency

Released today (7) by the IBGE, the National Index of Civil Construction - Sinapi increased 0.49% in July, the highest rise in the year. The rate is 0.35 percentage points above that registered in June (0.14%) and 0.19 p.p. below that of July 2019. The index accrues a rise of 1.97% between January and July. The cumulative index over the last 12 months was 3.33%, below the rate of 3.52% recorded over the 12 months prior to that period.

"The result reflects the rise in the costs of both parcels that comprise the aggregate index. The parcel of material increased 0.48% due to the generalized rise of several products, highlighted by cement, whose prices rose in virtually all the states", explains Augusto Oliveira, manager of the survey. Another factor that weighted in the aggregate index were the collective work agreements in São Paulo and Paraíba.

"Except for 2016 (0.2%), the rate in July is traditionally high, due to the collective work agreement in São Paulo, a state that weights a lot in the index," clarifies Oliveira.

Workforce changed 0.50% and material, 0.48% in July

The national cost of construction, per square meter, which in June closed at R$1,175.62, increased to R$1,181.41 in July, of which R$619.58 were relative to material, and R$561.83 referred to workforce.

The parcel of materials changed 0.48%, registering a significant rise in relation to the previous month (0.17%), a difference of 0.31 percentage points. The rate remained at the same level when compared with the index in July 2019 (0.47%).

The parcel of workforce recorded a rate of 0.50%, increasing 0.40 percentage points over the previous month (0.10%). When compared with the rate in July 2019 (0.92%), it dropped 0.42 percentage points.

From January to July, the cumulative indexes were of 2.30% (material) and 1.56% (workforce), but over the last twelve months, they stayed at 3,62% (material) and 2.94% (workforce).

Southeast Region posts the highest rise

Registering positive rates in all the states and a work collective agreement in São Paulo, the Southeast Region recorded the highest regional change in July (0.70%).

The other regions recorded the following figures: 0.31% (North), 0.50% (Northeast), 0.17% (South) and 0.24% (Central-West).

The regional costs, per square meter, were: R$1,188.86 (North); R$1,096.97 (Northeast); R$1,233.10 (Southeast); R$1,232.40 (South) and R$1,179.66 (Central-West).

Among the states, Paraíba posted a rise in the professional categories and a rate of 2.25%, being the state that registered the highest monthly change. It was followed by São Paulo (1.05%), which recorded an increase both in the parcel of material and workforce.