Costs in civil construction increase 10.16% in 2020, highest index in 7 years

Section: Economic Statistics | Carlos Alberto Guimarães

January 12, 2021 09h00 AM | Last Updated: January 12, 2021 02h39 PM

Constant rises in costs of construction material impacted index - Photo: Mayke Toscano/Secom-MT

Released today (12) by the IBGE, the National Index of Civil Construction - Sinapi closed 2020 with a rise of 10.16%, increasing 6.13 percentage points over 2019 (4.03%). It was the highest rate in the time series with exemption, started in 2013. The index rose 1.94% in December 2020, standing 0.12 percentage points above the rate of the previous month (1.82%). The result had been 0.22% in December 2019. 

Sinapi measures the national cost for the housing sector, which changed to R$1,276.40 in December, being R$710.33 relative to materials and R$566.07 to workforce. In November, the cost had been R$1,252.10.

"The time series was highly impacted from July onwards, due to the continuous rises of the parcel of materials," explains Augusto Oliveira, manager of the survey. "In August, we perceived that the parcel of materials created a gap from the parcel of workforce, exerting a quite high influence on the aggregate," adds him. 

In December, the parcel of materials also registered the highest monthly change in 2020: 3.39%, increasing 0.24 percentage points over the previous month (3.15%) and 3.52 percentage points over December 2019 (-0.13%). On the other hand, the parcel of workforce recorded a rate of 0.18%, falling 0.07 percentage points over the previous month (0.25%) and 0.41 percentage points over the rate of December 2019 (0.59%).

The Covid-19 pandemic partly explains the rises in the segment of materials, though the reasons are several, according to Oliveira. "Small works, made at home, heated the market during the pandemic and that demand influenced the supply of materials. Industries were affected by limited personnel or supply of raw material. Several market conditions, in an atypical period, led to the acceleration of the prices in the segment of materials and inputs of the civil construction, especially steel, cement and electrical conductors, among others," said him. 

The cumulative index in the year for 2020 was 17.28% in materials, whereas the parcel of the cost with workforce hit 2.33%. In 2019, the parcel of materials closed at 4.54% and workforce, at 3.47%. 

Influenced by the significant rise in the parcel of materials, the Northeast Region posted the highest regional change in December (2.37%) and the highest cumulative figure in 2020 (12.50%). In the other regions, the results were: 1.75% (North), 1.69% (Southeast), 2.27% (South) and 1.35% (Central-West). 

The regional costs, per square meter, were: R$1,289.71 (North); R$1,201.17 (Northeast); R$1,319.86 (Southeast); R$1,335.31 (South) and R$1,260.87 (Central-West). Roraima registered the highest rate for the last month of the year: 3.41%. In the cumulative index in the year, Bahia recorded the highest rate (17.08%), also posting the highest rate in the cumulative index of the parcel of materials: 28.09%.