08/27/2024 – 9:31
The Construction Confidence Index (ICST) rose 0.2 points in August, reaching 97.5 points, an increase for the fourth consecutive month. With this result, the ICST advanced 0.4 points in the quarterly moving average, as recently announced by the Getulio Vargas Foundation (FGV).
The increase in this reading reflected the growth of the Current Situation Index (ISA-CST), which rose 1.5 points to 97.0 points. At the opening, there was an increase of 1.5 points in the current business situation and 1.6 points in the contract portfolio volume indicator. In contrast, the Expectations Index (IE-CST) fell 1.3 points to 98.0 points. This month, the indicator of expected demand over the next three months fell 2.6 points, while the indicator of business trends over the next six months fell 0.1 point.
“The sector’s assessment of the current business environment has improved steadily since last year. The recent evolution indicator reached a new record this year, indicating that activity remains buoyant, generating a shortage of qualified workers, which increased again in August. This is the main limitation to the sector’s growth in the current scenario,” highlighted Ana Maria Castelo, the coordinator of Construction Projects at Ibre/FGV, in a note.
She highlighted that the Expectations Indicator gave back part of the increase seen in July, with the fluctuations probably influenced by the macroeconomic scenario, now under the effect of the possibility of an interest rate hike. “But the sector fundamentals remain positive and, despite the drop in the margin, most companies indicate that the demand expected for the coming months will increase and business will improve,” she considered.
The Construction Capacity Utilization Level (Nuci), in turn, advanced 0.5 points in this reading, reaching 80.0%. The Labor Nuci rose 0.6 points, to 81.4%, while the Machinery and Equipment Nuci advanced 0.5 points, to 74.6%.
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