Costs of civil construction rise 1.44% in September, highest rise since 2013

Section: Economic Statistics | Carmen Nery

October 09, 2020 09h00 AM | Last Updated: October 09, 2020 03h17 PM

For the third month, inflation of material contributed to rise construction costs - Photo: Helena Pontes/IBGE News Agency

Released today (9) by the IBGE, the National Index of Civil Construction - Sinapi rose 1.44% in September, the highest rate since July 2013 and 0.56 percentage points above that registered in August (0.88%). The index accrues a rise of 4.34% between January and September. In the last 12 months, the rate adds up to 4.89%, above the rate of 3.78% recorded over the immediately previous 12 months.

"We are hitting three consecutive months – closing the third quarter – with successive rises in the parcel of material, which is impacting the variation of the national index. The costs of workforce have remained stable, in spite of two agreements in Brasília and Pará. The rise in all the segments of material – cement, electrical conductors, ceramics – weighted on the 1.44% index," explains Augusto Oliveira, manager of the survey.

Material price rises 2.55%

The national cost of construction, per square meter, which in August closed at R$1,191.84, in September rose to R$1,209.02, being R$645.56 relative to material and R$563.46 relative to workforce.

The parcel of material increased 2.55%, registering the highest index, taking into account the time series with exemption of payroll started in 2013. The increases were 0.95 percentage points above the previous month (1.60%) and 2.28 percentage points above September 2019 (0.27%).

Having recorded two adjustments, the parcel of workforce posted a rate of 0.20%, rising 0.11 percentage points in relation to the previous month (0.09%) and dropping 0.27 percentage points if compared with the rate of September 2019 (0.47%).

From January to September, the cumulative indexes were 6.59% (material) and 1.85% (workforce), but over the last twelve months, they stayed at 6.90% (material) and 2.62% (workforce).

Having a significant rise in the parcel of material in all the states and a collective work agreement in Pará, the North Region registered the highest regional change in September: 1.81%.

The other regions recorded the following figures: 1.62% (Northeast), 1.33% (Southeast), 1.06% (South) and 1.52% (Central-West). The regional costs, per square meter, were: R$1,221.08 (North); R$1,127.78 (Northeast); R$1,258,43 (Southeast); R$1,255.02 (South) and R$1,208.09 (Central-West).

Costs skyrocket in Sergipe and decelerate in Rio de Janeiro

"Although the costs of workforce remained stable, Sergipe is one of the highlights, as the parcel of material rose 5.27%. In the aggregate of the two parcels, the state recorded a rise of 2.91%, the highest change among all the Federation Units. Having risen 0.41%, Rio de Janeiro decelerated the rate which had been 0.59% in August. Having registered 1.19% in August, the group of material fell to 0.85% in September and the workforce remained stable for two months in Rio de Janeiro," highlights Oliveira.

Sinapi, created in 1969, has the purpose of producing information on costs and indexes in a systematic way and with a national coverage, in order to elaborate and assess budgets as well as monitor costs.