The Construction Confidence Index (ICST) rose 1.4 points in August and reached 98.2 points. According to the Brazilian Institute of Economics of Fundação Getulio Vargas (FGV Ibre), which released data today (26), this is the highest level reached by the indicator since December 2013, when the index was at 98.3 points.
On quarterly moving averages, the index rose 0.6 point. In July, the ICST had dropped 0.7 point. In comparison with August 2021, the increase was 1.8 points.
According to the coordinator of Construction Projects at FGV Ibre, Ana Maria Castelo, the survey revealed a feeling of improvement in the current business situation and in the coming months, recovering the previous drop in the confidence of entrepreneurs in the sector, despite the indicator remaining below of the level of neutrality.
“Despite a more favorable perception of the current situation and despite the latest measures aimed at the social housing segment, expectations are more pessimistic than a year ago, which signals a still challenging scenario ahead”, said Ana Maria.
According to the coordinator, there was a drop in the annual comparison in infrastructure, indicating the prospect of divestment with the election period.
“The infrastructure segment registered the biggest drop in the indicator in the inter-annual comparison, which may be a result of the perspective of a slowdown in investments related to the electoral cycle. In the residential buildings segment, expectations regarding forecast demand were more optimistic compared to July”.
components
Among the components of the ICST, the rise in August was influenced by the improvement in assessments of the current moment and also by the prospects for the coming months.
The Current Situation Index (ISA-CST) rose 1.6 points in the month to 96.4 points, reaching the highest level since May 2014, when it was at 97.6 points, driven by the current business situation indicator, which rose 3.9 points to 96.2 points. The contract backlog volume indicator dropped 0.8 points to 96.5 points.
The Expectations Index (EI-CST) rose 1.2 points to 100.1 points, with the greatest optimism about demand forecast for the next three months, which rose 1.7 points to 102.8 points. The business trend indicator for the next six months advanced 0.6 point, to 97.3 points.
The Construction Capacity Utilization Level (Nuci) changed -0.2 percentage point to 77.7%, remaining relatively stable. The Manpower Nuci remained at 78.9% and the Machinery and Equipment Nuci dropped 1.2 percentage points to 72.7%.
Indicators on current activity and expected employment fell in the month, but remain positive in quarterly moving averages. In August, 31.0% of companies indicated their intention to hire in the coming months and 11.9% mentioned a reduction in employment.