Construction costs increase by 1.45% in March

Section: Economic Statistics | Marília Loschi

April 09, 2021 09h00 AM | Last Updated: April 09, 2021 11h54 AM

#PraCegoVer A foto mostra a parte de cima de uma obra em andamento, ainda na fase de colocação de telhas
The major influence on Sinapi in March was the 2.2% rise in the cost of materials - Photo: Simone Mello/IBGE News Agency

The National Index of Civil Construction (Sinapi), released today (April 9) by the IBGE, increased 1.45% in March and was 0.12 percentage points above February (1.33%). In the first quarter of the year, the index accumulates an increase of 4.84% and, in the last 12 months, the increase reaches 14.46%. It is worth mentioning the cumulative shares of materials, which in 12 months reached 24.61%.

The main influence on the result of the month was the increase in the cost of materials (2.2%), with a slight decrease in relation to February (2.35%). “The portion of the materials closes the first quarter of the year with a series of three months in deceleration”, explains the survey manager, Augusto Oliveira. "Even with the slowdown, the change is among the seven largest recorded since 2013, with the beginning of the tax exemption in the payroll."

Among the materials with the most significant increases, the highlight is steel, which gathers inputs such as rebar, conduction pipe, wires and beams, among others, and had an impact on nearly 20 Brazilian states. Inputs such as slabs, which require steel in their production, also showed variation in several states.

The rise in the share of labor force, up 0.47%, is due to collective agreements in Mato Grosso, Bahia and Amapá. “Although having occured in few states, agreements have a significant weight. Bahia, for example, is one of the main states, in terms of weight of labor force,” informed Mr. Oliviera.

“We are living in an atypical period, since May last year. Looking at the time series, there has been a sequence of increases since August 2020, in the general index ”, he comments.

The national cost of construction, per square meter, which had closed at R$ 1,319.18 in February, increased to R$ 1,338.35 in March, of which R$ 765.07 were related to materials and R$ 573.28, to labor force.

Central-West boosts, driven by Mato Grosso

The Central-West region, with a significant increase in the share of materials in all states and a collective agreement in Mato Grosso, had the greatest regional change in March, 1.93%. The other regions presented the following results: 1.06% (North), 1.53% (Northeast), 1.54% (Southeast) and 0.96 (South).

Regional costs, per square meter, were: R$ 1,331.86 (North); R$ 1,265.29 (Northeast); R$ 1,385.56 (Southeast); R$ 1,394.91 (South) and R$ 1,322.36 (Central-West).

With a collective agreement and an increase in the share of materials, Mato Grosso had the largest monthly change, with 3.56%.

About the survey

The National System of Costs Survey and Indexes of Construction – SINAPI a joint effort between the IBGE and Caixa Econômica Federal – CAIXA, aims at producing: monthly series of costs and indexes for the housing sector; monthly series of the average wages paid for labor; the average prices of construction materials, machinery and equipment; and services for the basic sanitation, infrastructure and housing sectors.

SINAPI statistics are essential in investment planning, especially for the public sector. Prices and costs help in the design, analysis and evaluation of budgets, while indexes allow updates in the expense estimates in contracts and budgets.