Construction confidence in Brazil rises to highest level since March 2014 – FGV
RIO DE JANEIRO, BRAZIL – Influenced by an improvement in expectations for the coming months, the Construction Confidence Index rose 3.3 points to 95.7 points in July, reaching its highest level since March 2014 when it reached 96.3 points, reports the Getulio Vargas Foundation (FGV).
On a quarterly moving average, the index rose 3.6 points, reaching its second consecutive high.
For Ana Maria Castelo, construction projects coordinator at FGV-Ibre, the survey shows that a “slightly” optimistic scenario prevails again. “If in the second half of 2020 the increase in costs helped to lower confidence, in 2021 this effect was weakened,” the economist writes in a note.
The expectations index (IE) rises by 6.8 points to 102.2 points, reaching its highest level since January 2020 (104.2 points). The forecast demand and business development indicators rise 6.4 and 7.2 points to 102.3 and 102.0, respectively.
In July, 26.7% of construction companies reported an increase in activity. This is the highest percentage recorded since October 2012. However, 15.7% reported a decrease that month, while 19.5% still reported a decrease in 2021. The positive balance is an important indicator of the direction the sector is beginning to take, but the small difference shows that this movement is not yet fully spread around the industry.
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