Brazil: July Sees 0.23% Increase in National Construction Index

The National Construction Civil Index (Sinapi) in Brazil marked a 0.23% rise in July, down by 0.16 percentage points from June (0.39%). Over the past 12 months, there was a cumulative increase of 3.52%, which is lower than the 4.82% recorded in the preceding 12 months. The index for July 2022 stood at 1.48%.

The national construction cost per square meter, which closed at R$1,706.50 in June, reached R$1,710.37 in July, with materials accounting for R$1,001.78 and labor for R$708.59.

Material costs barely changed with a variation of 0.01%, almost stable and just 0.29 percentage points above the previous month’s rate. In June, the material cost had experienced a decrease of 0.28%. Compared to July 2022 (1.38%), there was a substantial decrease of 1.37 percentage points in July 2023.

Labor costs, influenced by fewer collective agreements than the previous month, saw a rate of 0.53%, a decline of 0.83 percentage points compared to June (1.36%). In comparison to July 2022, there was a drop of 1.09 percentage points (1.62%).

From January to July, the accumulations were as follows: 0.05% (materials) and 4.51% (labor). Over the last 12 months, the accumulations stood at 1.39% (materials) and 6.65% (labor).

The Southeast region recorded the highest monthly variation in July, primarily due to the collective agreement in Rio de Janeiro. Other regions reported the following results: 0.08% (North), 0.08% (Northeast), 0.18% (South), and -0.09% (Central-West).

The state of Rio de Janeiro experienced the highest increase, with adjustments in professional categories and a rise in material costs, resulting in a 2.69% rate in July.