Construction costs rise 2.46% in June, biggest increase since 2013

Section: Economic Statistics | Marília Loschi

July 08, 2021 09h00 AM | Last Updated: July 09, 2021 11h45 PM

Workforce accounted for main contribution, due to collective labor agreements in tes states - Photo: Helena Pontes/IBGE News Agency

The National Civil Construction Index (Sinapi), released by the IBGE, rose by 2.46% in June and was 0.68 percentage points above the May rate (1.78%). That is the biggest increase in the time series with payroll exemption since the start of the time series, in 2013. In January, civil construction had already hit a record, 1.99%. The end of year 2020 also had its highest result since 2013, a cumulative 10.16%.

The time series shows a sequence of increases in the general index since June 2020. The main influence on the result of the month came from workforce, with an increase of 2.60%, highest rate in 2021, due to collective labor agreements in several states, including São Paulo. “What makes June different from other months, in this period, is that we have seen a drop of the share of materials and an increase of workforce, due to rise of salaries of professional categories in ten states,” says the survey manager Augusto Oliveira.

Materials recorded a change of 2.36%, a decrease of 0.30 percentage points against the previous month (2.66%). Despite the deceleration in the month, the rate is still among the highest in the time series. Considering the June 2020 index (0.17%), there was an increase of 2.19 percentage points.

The national cost of construction by square meter, which had been R$ 1,387.73 in May, changed to R$ 1,421.87, with R$ 829.19 relative to material and R$ 592.68 to workforce.

South recorded biggest increase, driven by Paraná

The South Region, with an increase in materials in all the states and a collective labor agreement in Paraná, recorded the biggest regional change in June, 3.80%. The Other Major regions recorded the following results: 1.14% (North), 1.92% (Northeast), 2.83% (Southeast) and 1.96% (Central West).

Regional costs by square meter were: R$ 1,382.99 (North); R$ 1,343.47 (Northeast); R$ 1,482.71 (Southeast); R$ 1,493.35 (South) and R$ 1,379.39 (Central West).

The rise of materials and collective labor agreements affected construction costs in Paraná, which recorded the biggest monthly change, 5.42%, followed by Mato Grosso do Sul (4.65%), Pernambuco (4.22%) and São Paulo (3.87%).

More on Sinapi

SINAPI - a joint endeavor 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 construction services for 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’s values in contracts and budgets. Please, access data on the Sidra database.