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Civil construction costs up 0.31% in January

Section: Economic Statistics | Irene Gomes

February 09, 2023 09h00 AM | Last Updated: February 10, 2023 01h00 PM

Share of materials registers first negative change since December 2019 - Photo:/IBGE News Agency

The National Index of Civil Construction (Sinapi), released today (February 08) by the IBGE, rose 0.31% in January, an increase of 0.23 percentage points in relation to December. In the last 12 months, the cumulative index was 10.45%, a result close to the 10.90% registered in the previous twelve months. In January last year, the index was 0.72%.

The national construction cost in January, per square meter, was R$ 1,684.45, of which R$ 1,000.94 related to materials and R$ 683.51 to labor force. In December, the construction cost closed at R$ 1,679.25.

“One of the highlights this month is the change in the share of materials, which presented the first negative result since December 2019, when it was -0.13%”, comments Augusto Oliveira, manager of Sinapi.

In January, the share of materials changed -0.03%, starting the year with a decrease of 0.1 percentage points in relation to December (0.07%). Considering the January 2022 index (0.63%), there was a decrease of 0.66 percentage points.

“This month, several states recorded negative rates in the aggregate result of material components and labor force. This picture originated from the falls in the prices of materials, portraying the deceleration of the indices in some states and, in others, a deflation”, analyzes Mr. Oliveira.

On the other hand, what pushed the index up in January was the share of labor force, driven by the increase of the minimum wage. The increase of 0.81% was 0.73 percentage points higher than that registered in December of last year (0.08%), but fell by 0.06 percentage points when compared to January 2022 (0.87%).

Minas Gerais has the highest increase

With the rise seen in the professional categories, Minas Gerais was the state that recorded the highest rate in the first month of the year, 1.99%.

In regional terms, the highest increase was in the North Region (0.71%). The other regions presented the following results: 0.03% (Northeast), 0.54% (Southeast), 0.00% (South) and 0.25% (Central-West).

“Of the seven states in the North Region, five showed an increase, with a highlight to Amazonas (1.07%) and Tocantins (1.04%)”, highlighted Mr. Oliveira.

In terms of average regional costs (per square meter), the South ranked first (R$ 1,761.86), followed by the Southeast (R$ 1,744.44), Central-West (R$ 1,727.02), North ($1,709.77) and Northeast (R$1,561.05).

More about Sinapi

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

Sinapi's statistics are fundamental in investment planning, especially for the public sector. Prices and costs help in the preparation, analysis and evaluation of budgets, while indexes make it possible to update the amounts of expenses in contracts and budgets. Please, access Sinapi's data on the Sidra database.

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