SAO PAULO (Reuters) – The construction industry has raised its expectations for the sector’s performance in 2021 after a performance in June considered the best of the semester and above the historical average, the Brazilian Chamber of Construction Industry said on Monday. (Cbic).
The entity revised the forecast for the GDP growth of the Brazilian civil construction this year from 2.5%, released in April, to 4%, citing among the factors interest rates “still at a low level, the improvement in the economic environment, the demand consistent, even in the face of the pandemic and the continuity of small works and reforms”.
“This is a depressed growth, as the increases impact the construction development, which grows well below its capacity. An example of this is the use of the operational capacity of companies in the sector, which is at 64%”, said the Cbic in a statement.
According to Cbic, if the forecast is confirmed, 2021 will have the best performance in the sector since 2013, when the construction GDP grew 4.5%.
In June, the index that measures the activity of the sector registered 51 points, the best level since September of last year (51.2 points). The 50-point mark divides expansion and contraction of activity.
Cbic stated that for three consecutive months the sector has been registering a level of activity above its historical level. The entity also commented that “lack and/or the high cost of raw material continues to be the main problem faced by construction entrepreneurs for the fourth consecutive quarter”.
(By Alberto Alerigi Jr.)
+ Learn about the effectiveness of each vaccine against Covid-19