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Prices in construction change 0.39% in June leveraged by eight collective work agreements

Section: Economic Statistics | Carmen Nery

July 11, 2023 09h00 AM | Last Updated: July 11, 2023 11h01 AM

June´s index was influenced by the increase in the cost of the workforce, due to eight collective work agreements - Picture: Alex Ribeiro/Agência Pará

Released today (11) by the IBGE, the National Index of Civil Construction (Sinapi) changed 0.39% in June, an increase of 0.03  percentage points (p.p.) in relation to May (0.36%). Therefore, the rise is of 4.82% in the last 12 months, well below the rate of 6.13% registered in the 12 immediately previous months and reaching the pre-pandemic level. The cumulative index in the year registered 1.62%. The index had been 1.65% in June last year.

The national cost of construction, per square meter, which in May had been R$1,699.79, changed to R$1,706.50 in June, with R$1,001.63 relative to material and R$704.87, to workforce.

The parcel of material changed -0.28%, maintaining the downward trend noticed last month and staying 0.04 percentage points below the May´s rate (-0.24%). It dropped 1.47 percentage points compared with the index in June 2022 (1.19%).

“Material is decelerating with negative indexes in January, May and June. And many states recorded negative changes in the prices of several products. It is the market resuming a more stable scenario, without the influence of a atypical situation as the pandemic, in which material significantly increased. Now they are behaving closer to the pre-pandemic period. A proof is that the cumulative indexes have been constantly dropping,” states Augusto Oliveira, manager of Sinapi.

In spite of the deflation in the share of material in several states, the share of workforce registered 1.36% and contributed to the rise of the monthly indicator. The rise in the share of workforce was influenced by eight collective work agreements this month – Rondônia, Acre, Ceará, Paraíba, Pernambuco, Espírito Santo, Santa Catarina and Goiás. Therefore, it increased 0.12 percentage points in relation to May (1.24%). It fell 0.99 percentage points (2.35%) in relation to June 2022.

With collective work agreement and rise in material, Espírito Santo records the highest change in June

“São Paulo also reported a slight change in the share of workforce, possibly due to the work agreement last month. Yet, the highlights were Santa Catarina and Espírito Santo, which also registered a rise in the share of material. Espírito Santo recorded the highest rate in June, 2.54%. Followed by Santa Catarina (2.38%),” completes Oliveira.

South Region records biggest monthly change in June

With highs in the share of material in all states and an adjustment in the professional categories in Santa Catarina, the South Region stood with the highest regional change in June, 0.98%. The other Major Regions recorded the following results: 0.44% (North), 0.66% (Northeast), -0.04% (Southeast) and 0.49% (Central-West).

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.

Check the data of the National System of Survey of Costs and Civil Construction on Sidra. The next release of Sinapi, related to July, will be on August 11.

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