The Civil Construction Confidence Index fell 1.7 points in January, with 93.6 points, representing the lowest level since March 2022 (92.9 points). In quarterly moving averages, the index retreated 2.4 points. The result was disclosed today (26) by the Brazilian Institute of Economics of the Getulio Vargas Foundation (Ibre/FGV).
According to the coordinator of construction projects at Ibre/FGV, Ana Maria Castelo, construction entrepreneurs start the year more pessimistic compared to the last quarter of 2022. She said that, for the fourth consecutive month, confidence fell, as a result of the worsens in the current business environment and expectations.
The researcher pointed out that expectations have deteriorated even further in recent months, reflecting a perception of greater uncertainty for business in view of the possibility of maintaining interest rates at high levels for longer.
“In any case, compared to the scenario of a year ago, confidence in January 2023 is still slightly higher: in the last 12 months, when there was a significant slowdown in raw material costs, which contributed to the reduction of difficulties perceived by the companies”, said, in a note, Ana Maria.
different perceptions
According to Ibre/FGV, the pessimism of January is not spread across all sectors. In the interannual comparison, the confidence indicator was supported by a significant improvement in the perception of the current situation of entrepreneurs linked to infrastructure. To a lesser extent, the index of construction companies also grew. “On the other hand, the drop in expectations affected all segments, revealing the more widespread effect of uncertainties”, says the survey.
