Construction costs grow 0.88% in September, lowest rate in 2021

Section: Economic Statistics | Carmen Nery

October 08, 2021 09h00 AM | Last Updated: October 13, 2021 07h15 PM

The segment of steel still records increase in September, but with the lowest impact on the indicator - Photo: Helena Pontes/IBGE News Agency

The National Index of Civil Construction (Sinapi), released today (October 8) by the IBGE, rose 0.88% in September, 0.11 percentage points (pp) below that of August and the lowest rate in 2021. In the cumulative result for the last 12 months, the rate is 22.06%, slightly below the 22.74% registered in the previous 12 months. The cumulative index from January to September was 15.62%. In September 2020, the index was 1.44%.

“The 0.88% rate is not only the lowest in the year, but also shows the deceleration taken place since July.  That is due to the leveling off of material prices, which started having lower increases. Even some states with positive changes in the share of materials were at lower levels than those recorded in previous months. All input segments are decelerating. The steel segment, which had a very high weight in the last months, still represents increase, but less impressively. However, it is it is worth highlighting that, despite being the lowest rate in the year, it is still very high in relation to the time series”, analyzes Sinapi’s manager, Mr. Augusto Oliveira.

The national cost of construction, per square meter, which in August closed at R$1,463.11, in September rose to R$ 1,475.96. Of this figure, R$877,35 were relative to materials, while R$598.61 referred to labor force.

The share of materials changed 1.21%, a drop of 0.41 percentage points (pp) over the preceding month (1.62%). Considering September’s index in 2020 (2.55%), the decrease was more significant, 1.34 percentage points.

Conversely, the share of labor force, with a rate of 0.40% and three collective bargaining, recorded high of 0.32 percentage points over the index of August (0.08%). Compared to September 2020 (0.20%), there was high of 0.20 pp.

“The three bargaining agreements were in Goiás, 3.13%, Amazonas, 3.11% and Rio Grande do Sul - due to a collective agreement approved in \July with percentage applied in the succeeding months, recording 1.81 in September. That resulted in a rise of 0.40% in the share relative to labor force”, highlights the manager.

The cumulative index in th year are 23.51% (material) and 5.75% (labor force), whereas in twelve months they stood at 35.89% (materials) and 6.25% (labor force), respectively.

Central-West Region records biggest rise

The Central-West Region, with increase in the share of materials in all states and collective work agreement in Goiás, had the highest regional change in September, 2.03%.

The other regions recorded the following figures: 1.76% (North), 0.55% (Northeast), 0.58% (Southeast) and 1.15% (South).

The regional costs, per square meter, were: R$ 1.438,32 (North); R$ 1.386,06 (Northeast); R$ 1.535,22 (Southeast); R$ 1.565,49 (South) and R$ 1.452,91 (Central-West).

Among the states, Goiás was the one with the highest monthly change, 3.13%, due to the rise in the share of materials and collective bargaining registered in the professional categories. Amazonas was another highlight (3.11%), also under the pressure of labor force increase.

More about SINAPI

The National System of Costs Survey and Indexes of Construction – 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 the SIDRA database.