Construction costs grow 1.78% in May

Section: Economic Statistics | Carmen Nery

June 09, 2021 09h00 AM | Last Updated: June 10, 2021 04h49 PM

Materials that have steel as raw material continue to exert strong influence on the construction index - Photo: Helena Pontes/Agência IBGE Notícias

The National Civil Construction Index (Sinapi), released today (May 9) by the IBGE, rose 1.78% in May, a slight deceleration of 0.09 percentage points compared to April (1.87%). In the last 12 months, the rate is 18.18%, a result above the 16.31% registered in the previous twelve months, and the highest in the time series. The cumulative from January to May was 8.71%. In May 2020, the index was 0.17%.

The national cost of construction per square meter, which in April had closed at R$ 1,363.41, rose in May to R$ 1,387.73, with R$ 810.08 relating to materials and R$ 577.65 to labor force.

The share of materials changed by 2.66%, registering a drop of 0.48 percentage points in relation to the previous month (3.14%). Considering the index of May 2020 (0.19), there was an increase of 2.47 percentage points.

“There was a generalized increase in the prices of materials across the country, especially in Bahia, which had the biggest increase, 4.94%. Materials also present the highest cumulative index in the last 12 months of the entire time series, 31.58%. Among them, those that have steel as raw material continued to have a strong influence, as evidenced in previous months. We have been replacing the lows last year with highs in 2021”, highlights the manager of Sinapi, Augusto Oliveira.

The share of labor force, with a rate of 0.58%, influenced by collective agreements executed in Rio de Janeiro and in the Federal District, increased by 0.40 percentage points in relation to April (0.18%) and 0 .44 percentage point compared to May of the previous year (0.14%).

"In May, there was the collective bargaining in Rio de Janeiro and Brasília, in addition to records of salary increases in Mato Grosso do Sul, which have not yet finished, in all regional unions, the agreement for the 2021/ 2022  period”, analyzes Mr. Oliveira.

The cumulative figures for the year are 14.03% (materials) and 2.04% (labor force), whereas in 12 months they were 31.58% (materials) and 3.44% (labor force).

Southeast region registers highest increase

The Southeast region, with high observed in the share of materials in all states, and collective agreement registered in Rio de Janeiro, had the greatest regional change in May, 2.07%. The other regions presented the following results: 1.16% (North), 1.90% (Northeast), 1.14% (South), and 1.69% (Central-West).

The regional costs, per square meter, were: R$ 1,367.38 (North); R$ 1,318.11 (Northeast); R$ 1,441.87 (Southeast); R$ 1,438.67 (South) and R$ 1,352.93 (Central-West).

Among the states, Rio de Janeiro had the highest monthly change, 3.73%. Then came Bahia, with 2.95%, which registered the highest rate in the share of materials (4.94%).

More about Sinapi

Sinapi, a joint effort of the IBGE and the federal bank Caixa Econômica Federal, aims at producing monthly series of costs for the housing sector, and monthly series of median wages for labor and median prices for materials, machinery and construction equipment and services for basic sanitation, infrastructure and housing sectors.

Sinapi statistics are fundamental in investment pre-planning, especially for the public sector. Prices and costs give support in the preparation, analysis and evaluation of budgets, while indices enable the updating of expense values ​​in contracts and budgets. Please, access the data in the Sidra database.