CNI: construction industry is employing more in the country

According to the survey, the evolution index for the number of employees in construction stood at 50.7 points in May 2023. The result is better than that recorded in May 2022 (48.9 points) and in April of 2023 (50 points).

“The increase draws more attention because it is above the historical average for the period. May is a month of decline in employment, with an average of 45.1 points”, reported the CNI. According to the entity, data above the dividing line of 50 points indicate job growth; and below suggest fall.

activity level

The bulletin evaluated the index of evolution of the level of activity in the construction industry and the use of operational capacity, which presented the best result for May since 2014.

In the first case, an increase of 0.1 point was observed in the comparison between April and May 2023, going from 49.7 to 49.8 points – a variation that, from the CNI point of view, represents “stability”, as it is very close to the 50 point line. In May 2022 this index was at 49.5 points.

CNI’s Economic Analysis manager, Marcelo Azevedo, points out that the result obtained in May “is higher than the historical average for the month”, which is 46.3 points. “This means that the near stability of activity in May 2023 is an exception, as we usually have a drop in activity from April to May,” he explained.

The Operational Capacity Utilization increased by 1 percentage point between April and May 2023, ending the month at 67%. “In addition to being positive, this result is higher than the UCO average for the month of May (62%). Additionally, it is the highest UCO value for the month of May since 2014, when the operational capacity was 70%”, evaluates the CNI.

Expectation

Construction industry expectations indices retreat in June, despite positive data regarding the sector’s performance.

“All expectations indexes for the next six months of the construction industry retreated in June 2023. Despite the drop, the indicators are above 50 points, which shows optimism of the sector’s entrepreneur, even if more moderate”, highlighted the CNI.

According to the entity, the index of expectation of purchase of inputs and raw materials fell by 2.1 points, remaining at 52.9 points. The expectation index for the number of employees fell 1.7 points to 53 points.

The CNI observed “more moderate declines” in the expectations indexes related to the level of activity and new developments and services.

“The index of expectations in relation to the level of activity decreased by 0.5 points, moving to 54.3 in June. And the expectation index for new developments and services fell by 0.6 points, to 52.9 points, from May to June.”

The index that measures “investment intention” dropped 1.8 points from May to June 2023, changing from 45.4 points to 43.6 points. “Despite the fall, the index remains at a high level compared to the average for June, 35.1 points”, informs the entity.

confidence goes up

According to the CNI survey, an increase of 0.3 points was observed in June in the Business Confidence Index (ICEI), changing from 51.9 points to 52.2 points.

As it is moving away from the cutoff line (50 points), the variation means, according to the entity, that the businessman in the construction sector has a “slightly greater and more widespread” confidence.

The CNI adds that all components of the construction ICEI also showed “moderate progress” from May to June. Both the Current Conditions Index and the Expectations Index increased by 0.3 points in the period.