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Construction costs up 0.88% in August, greatest high of the year

Section: Economic Statistics | Umberlândia Cabral

September 09, 2020 09h00 AM | Last Updated: September 09, 2020 10h50 AM

 Cement drove the high in August - Photo: Helena Pontes/IBGE News Agency

The National Index of Civil Construction (Sinapi), released today (9) by the IBGE, grew 0.88% in August, the highest rate registered this year. It is an increase of 0.39 percentage points in relation to July (0.49%). This growth was mainly influenced by increases in cement and other materials, such as ceramic blocks and electrical conductors.

“In addition to being the biggest increase of the year, it is the highest index in August since 2013, when the series with exemption (without the payroll charges) began. Broadly speaking, it is the biggest increase since March 2014. This increase is mainly due to the cement segment - which has already been growing significantly since July - and other materials that have also increased, such as ceramic blocks, electrical conductors, steel and sand ”, explains survey manager Augusto Oliveira.

The index accumulates a 2.86% increase in the first eight months of the year. In the last 12 months, inflation has reached 3.78%, an increase over the 3.33% of the previous 12 months.

The national cost of construction, per square meter, which closed at R$1,181.41 in July, increased to R$1,191.84 in August, of which R$629.52 was related to materials and R$562.32 to labor force.

In August, the share of materials changed by 1.60%, an increase of 1.12 pp compared to the previous month (0.48%). The labor force share changed 0.09%, decelerating in relation to July (0.50%).

“Labor force weighs a lot in calculating the index. So, with the collective bargaining agreement in Pernambuco, there was an increase. Even so, in the aggregate set, the change in the share of materials had a much greater weight in this month's index ”, says Mr. Oliveira, also pointing out that the materials had significant growth in all states.

Northeast boosts and Amazonas reaches high of 1.69%

Regionally, with the increase in the share of materials in all states and the collective bargaining in Pernambuco, the Northeast had the largest change in the index in August: 1.17%. The other regions had the following results: 0.89% (North), 0.72% (Southeast), 0.76% (South) and 0.87% (Central-West).

The regional costs, per square meter, were: R$1,199.40 (North); R$1,109.75 (Northeast); R$1,241.92 (Southeast); R$1,241.81 (South) and R$1,189.95 (Central-West). Among the Federation Units, Amazonas had the highest increase in August, with 1.69%. The increase was caused by the rise in the share of materials. Next are Sergipe (1.54%) and Ceará (1.50%), states that presented the greatest increases.

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