The National Index of Civil Construction (Sinapi), estimated by IBGE in partnership with CAIXA, posted a change of 7.80% in June, 12.92 percentage points above May’s rate (-5.12%). The result of the month reflects the return of the social security contribution in the payroll of civil construction enterprises, which had been in force in April and May. The exemption, in force since April 1^st, had its effects interrupted on June 3, due to the expiration date of the provisional measure that established it (MP 601/12, 12/28/2012). Among other aspects, the measure had exempted the sector of the 20% of social security contribution – which strongly affected May’s result.[1]

As a result, considering the first semester of the year, the cumulative change is at 4.10%, while in the same period of 2012 it was at 3.26%.  The result of the last twelve months moved to 6.54%, 7.01 percentage points above the -0.47% rate recorded in the prior twelve-month period.  In June 2012, the rate was 0.70%.

The complete publication of the survey can be accessed at

www.ibge.gov.br/home/estatistica/indicadores/precos/sinapi/default.shtm.

The national cost of construction per square meter, which in May closed at R$ 826.34, changed to R$ 890.76 in June, R$ 460.89 relative to materials and R$ 429.87 to labor force.

The share of materials registered a change of 0.10%, contracting 0.36 percentage points in relation to the previous month (0.46%); while labor force, with a change of 1.80%, increased 13.12 percentage points in relation to May (-11.32%). In the first six months of the year, the cumulative indexes are: 1.56% (materials) and 6.97% (labor force), while, in twelve months, they were 3.04% (materials) and 10.57% (labor force).

                                      South Region boosts in June: 8.75%

The South Region, with a change of 8.75%, recorded the biggest high when the provisional measure 601/12 lost effect, influencing the payroll in June.  The other regions presented the following results: 6.45%(North), 6.73%(Northeast), 8.66%(Southeast) and 7.48%(Central-West).

The regional costs, per square meter, were:  R$ 886.83 (North), R$ 828.76 (Northeast), R$ 939.23 (Southeast), R$ 906.77 (South) and R$ 884.59 (Central-West).

The South Region also recorded the greatest change over the last twelve months (8.84%).

                                     Santa Catarina posts highest rise: 10.05%

Due to the pressure from salary increases following a collective work agreement, Santa Catarina registered June's highest rate, 10.05%. Acre, Ceará, Espírito Santo, São Paulo, Rio Grande do Sul and Federal District also had salary increases following collective work agreements exerting pressure on the results.