Construction costs have decelerated in May, according to FGV
The National Index of Construction-M (INCC-M) registered a variation of 0.19% in May, according to a survey released by the Brazilian Institute of Economics of the Getulio Vargas Foundation (FGV-IBRE) on Wednesday (25 ). The value is lower than that of April, from 0.41%.
The materials group, Equipment and Services was up 0.04% in the fifth month of 2016 against 0.29% in the previous period. The portion of the materials and equipment registered an increase of 0.07% in May, while in April the rate was 0.28%. The four subgroups in the category showed a decrease of rates of change: Material Structure (-0.03% to -0.23%), Installation Materials (0.43% to 0.21%), finishing materials (from 0.79% to 0.52%) and equipment People Transportation (from 0.35% to 0.31%). Regarding services, the rate was 0.33% in April to -0.07% in May. In the group, the deceleration of the subgroup projects was the most intense, from 0.29% to -0.50%.
Already the workforce registered an increase of 0.32% compared to 0.52% the previous month. It is believed that this is due to the salary increase registered in the city of Salvador.
Among the state capitals in five INCC-M decelerated: Salvador (2.23% to 1.72%), Brasília (0.06% to -0.21%), Belo Horizonte (0.96% to -0.07%), Recife (0.13% to 0.12%) and Porto Alegre (0.54% to 0.15%). Rio de Janeiro (0.04% to 0.05%) and São Paulo (0.04% to 0.07%), in turn, recorded acceleration.
The INCC-M is calculated based on prices collected from 21 the previous month and 20 of the reference month.