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Sinapi

Construction costs grow 1.89% in July

Section: Economic Statistics | Carmen Nery

August 10, 2021 09h00 AM | Last Updated: August 10, 2021 03h15 PM

#PraCegoVer A foto mostra um andaime coberto com lona verde e dentro dele estão dois operários com capacetes. O andaime está preso num paredão cinza de um edifício em obras.
July's high in construction costs was the third biggest in the year - Photo: Pixabay

The National Index of Civil Construction (Sinapi), released today (August 10) by the IBGE, rose 1.89% in July, the third highest increase of the year, but stood 0.53 percentage points below the previous month's rate (2.46%). In the last 12 months, the rate was 22.60%, a result above the 20.92% registered in the previous 12 months and the highest in the time series. The cumulative index from January to July was 13.49%. In July 2020, the index had been 0.49%.

"The cumulative indicators show higher values ​​and growing gradually because we are replacing months with the lowest rates in 2020. In addition to having a large difference in monthly rates, there has not been, so far, any month in 2021 whose index was lower than those of 2020. Since November 2020, when it was at 8.30%, the cumulative figure has been recording monthly the highest rates in the series”, highlights Sinapi manager, Mr. Augusto Oliveira.

The national cost of construction per square meter, which in June had closed at R$ 1,421.87, rose in July to R$ 1,448.78, with R$ 853.03 relating to materials and R$ 595.75 to labor force.

The share of materials changed by 2.88%, up 0.52 percentage points from the previous month (2.36%). Considering the month of July 2020 (0.48%), there was an increase of 2.40 percentage points.

“Materials continue with successive increases in prices across the country. The increase is widespread in all segments and progressive in all states, especially in the Southeast. The highs have been maintained throughout the year, with a focus on basic products derived from steel and electrical conductors, derived from copper, both inputs that are mineral commodities. These raw materials are having a great impact on the price of the products that use them”, analyzes Sinapi manager.

He also highlights that there is, above all, a growth in small works and in the real estate sector, which has lauched many new projects, as seen in press reports. “This increase in demand may be one of the reasons for the increases in the prices of civil construction inputs”, completes Mr. Oliveira.

The share of labor force with a rate of 0.52%, and less collective agreements signed, decreased by 2.08 percentage points compared to the index of June (2.60%). In relation to July 2020, there was an increase of 0.02 percentage points (0.50%).

“In the previous month, the share of labor force had a great impact on the index, as a result of the large number of approved collective agreements. In contrast, in July, collective agreements were executed only in three states – Rio Grande do Sul, Ceará and Maranhão, a number much lower than last month. As a result, labor costs in July fell 2.6 percentage points in relation to June, registering 0.52%”, analyzes the manager.

The cumulative figures for the year are 20.09% (materials) and 5.24% (labor force), whereas in 12 months they were 37.67% (materials) and 6.04% (labor force).

Southeast Region registers highest increase

The Southeast region, with increase in the share of materials in all its three states, had the greatest regional change in July, 2.25%.

The other regions presented the following results: 1.29% (North), 1.56% (Northeast), 1.90% (South), and 1.98% (Central-West).

The regional costs, per square meter, were: R$ 1,400.82 (North), R$ 1,364.47 (Northeast), R$ 1,516.02 (Southeast), R$ 1,521.78 (South) and R$ 1,406, 76 (Central-West).

Among the states, Mato Grosso do Sul had the highest monthly change, 3.58%, due to the increase both in the share of materials and in labor force; followed by Ceará (3.28%), influenced by the increase in materials and collective bargaining.

More about Sinapi

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

SINAPI statistics are fundamental in investment programming, especially for the public sector. Prices and costs support the preparation, analysis and assessment of budgets, while indices enable the updating of expense values ​​in contracts and budgets. Access the data on Sidra.



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