Construction costs grow 1.99% in January, greatest rise since 2013

Section: Economic Statistics | Caio Belandi

February 09, 2021 09h00 AM | Last Updated: February 09, 2021 04h30 PM

Construction materials increased 2.96%, especially steel, wood and PVC - Photo: Helena Pontes/IBGE News Agency

The National Index of Civil Construction (Sinapi), released today (9) by the IBGE, rose 1.99% in January compared to December and reached the highest rate in the series with exemption in the payroll, in July 2013. The result is 0.05 percentage points higher than the rate of December 2020 (1.94%). In the last 12 months, the rate was 12.01%, above the 10.16% registered in the preceding 12 months. In January 2020, the index had been 0.30%.

The national cost of construction per square meter, which closed 2020 at R$ 1,276.40, went to R$ 1,301.84 in January, of which R$ 731.37 related to materials and R$ 570.47 to workforce.

The workforce share increased by 0.78%, growing 0.60 percentage points in relation to December 2020 (0.18%). Compared to January 2020 (-0.06%), the increase was even greater, of 0.84 percentage points. This is because the survey covered two collective agreements, one in Piauí and another in Minas Gerais, explains Sinapi's manager, Augusto Oliveira.

“Minas is a state with significant weight in the national result. Thus, the January agreement influenced the result, even with the deceleration in the share of materials”, he adds. it is worth remembering that no collective agreements were signed in January 2020. Variations captured in some categories due to the rise in the national minimum wage also contributed, to a lesser extent, to the acceleration of the rate of January 2021 compared to December 2020.

The share of materials increased by 2.96%. "There is a deceleration trend, since the increase was lower than in December, when it was 3.39%", explains Mr. Oliveira. Considering the January 2020 index (0.62%), there was an increase of 2.34 percentage points. “Minas and Piauí also saw large increases in the share of materials, with a highlight to the segments of wood, steel such as rebars and wires, and PVC pipes”, points out Mr. Oliveira.

The cumulative index  in 12 months stood at 20% (materials) and 3.19% (workforce), respectively.

Northeast has the highest monthly change

The Northeast was the region with the highest increase in January, with 2.32%, influenced by the rise in the share of materials in all nine states; besides, there was the collective agreement registered in Piauí. The Southeast (2.06%) and the South (1.84%) come next. Central-West (1.58%) and North (1.27%) close the set.

With regard to regional costs per square meter, the South leads with R$ 1,359.87, followed by the Southeast with R$ 1,347.06. The other regions were as follows: North (R$ 1,306.14), Central-West (R$ 1,280.81) and Northeast (R$ 1,229.05).

Among the states, Piauí registered the highest increase (4.33%), with rises in the share of materials and collective agreements, followed by Minas Gerais, with 4.01%.