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Civil construction

Construction prices accelerate to 2.17% in May

Section: Economic Statistics | Caio Belandi

June 09, 2022 09h00 AM | Last Updated: June 09, 2022 02h20 PM

#PraCegoVer A foto mostra uma pilha grande de tijolos de construção.
Price of construction material remains rising since April - Photo: Licia Rubinstein/IBGE News Agency

Released today (9) by the IBGE, the National Index of Civil Construction (Sinapi) rose 2.17% in May, an increase of 0.96  percentage points (p.p.) in relation to April (1.21%), registering the the highest rate since June 2021. As a result, the cumulative index in the year stayed at 5.77%. The cumulative index over the last 12 months was 15.44%, slightly above the rate of 15.00% recorded in the 12 immediately previous months. The index had been 1.78% in May last year.

The national cost of construction, by square meter, changed from R$1,567.76 in April to R$1,601.76 in May, being R$962.98 relative to materials and R$638.78, to workforce. “The rate in May was influenced by the rise in materials and by several collective work agreements signed this month,” explains Augusto Oliveira, manager of Sinapi.

The parcel of materials remains in an upward trend. It rose 1.96% (or 0.10  percentage points) in May, showing the highest change since August 2021. Compared with the index in the previous year (2.66%), it dropped 0.70 p.p.

Concerning the parcel related to the workforce, several collective work agreements signed this month pressed the result of 2.49%, a rise of 2.25 p.p. in relation to April (0.24%). The annual comparison also increased, rising 1.91 p.p. in relation to May 2021 (0.58%). “The increase in salary hits all professional categories, no matter their level, impacting on the index,” justifies the manager of the survey.

In the cumulative index in the first five months of 2022, materials recorded 5.82% and workforce, 5.69%. In the cumulative indicator in the last 12 months, the result was 18.89% (materials) and 10.59% (workforce).

Goiás registers the highest rise among states; Central-West is the region with the highest change

Goiás was the Federation Unit with the highest increase in the construction costs, hitting a rise of 5.16%. The state of São Paulo (4.13%) also stood out, followed by Acre (3.78%), Rio de Janeiro (3.63%), Espírito Santo (3.43%), Federal District (3.35%) and Maranhão (3.22%)

Oliveira stated that the survey registered a rise in the parcel of materials and adjustments in the professional categories in Goiás. “São Paulo was the same case, having signed collective work agreement, impacting the construction index in this state, which has the highest weight in the survey. As a result, both states recorded the highest changes,” completes him.

The result in Goiás helps to explain the index in the Central-West, which reported the highest change among the regions for the third month in a row (3.24%). “The parcel of materials rose significantly in all the states of that region, besides the collective work agreements registered in Goiás and in the Federal District,” details Oliveira. The Southeast Region rose 3.19%, whereas the Northeast recorded 1.40%, the North, 1.22% and the South, 0.70%.

Concerning the regional costs, the Southeast recorded the highest value (R$1,676.34), followed by the South (R$1,649.32) and Central-West (R$1,623.17). The North (R$1,590.14) and Northeast (R$1,489.50) registered the lowest costs.

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 workforce 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. Please access the data on Sidra.



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