Construction costs slow down in May, points out FGV

The cost of construction slowed down in May, according to data released this Tuesday (26) by FGV Ibre. The INCC-M (National Construction Cost Index - M) rose 0.77% in the month, below the increase of 1.04% recorded in April. In 12 months, the indicator accumulates an increase of 6.82%.

The slowdown was driven by the Materials, Equipment and Services group, which went from an increase of 1.35% in April to 1.02% in May.

Within the group, Materials and Equipment slowed from 1.40% to 1.08%, while Services went from 0.97% to 0.50%.

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The variation in the Labor Index was 0.43% in May, also representing a decline when compared to the value of 0.61% observed in April.

Construction survey

Despite the relief in the monthly variation in costs, the ICST (Construction Confidence Index) remained at 92.6 points, at a level classified by FGV as moderately pessimistic among companies in the sector.

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The movement of is influenced by both the ISA-CST (Current Situation Index) and the IE-CST (Expectations Index). The ISA-CST rose 0.6 points, reaching 92.3 points, while the IE-CST fell 0.8 points, to 92.9 points.

According to FGV, the worsening outlook is related to the business environment, marked by a lack of workers and rising costs.

*Under the supervision of Jenifer Ribeiro

Source: CNN