Construction confidence remains stable in June, credit for the sector advances

The indicator’s stability reflected the result of its two components, the Current Situation Index, which remained at 92.5 points, and the Expectations Index, which varied by minus 0.3 point, to 95.3 points.

Economist Newton Ferreira da Silva comments on the results released by the FGV. “There is a feeling of improvement in the case of residential buildings, with the Minha Casa, Minha Vida program, but in general the panorama is not as optimistic as it was in December 2022, according to the survey. Let’s see now what can happen, if there is a scenario of interest rate reduction, and there is a positive impact on the resumption of economic activity, “he explained.

Macroeconomic conditions, such as the interest rate, reflect on the civil construction confidence index, however, incentive measures adopted by the federal government are already showing results, as pointed out by economist Felipe Queiroz. “If the interest rate is too high, the volume of financed properties is lower, the cost of financing is higher, and this prevents growth. On the other hand, the stimulus measures adopted by the government that are already starting to have an effect, so that there are segments within the indicator that already show an improvement, due to incentive measures for Minha Casa, Minha Vida”, he enumerated.

Credit in the sector

According to a survey by the Brazilian Development Association (ABDE), the civil construction sector contracted R$ 32 billion in credit from 34 institutions of the National Development System (SNF) in December last year. The number represents an increase of 30% compared to the same period of 2021. The study considered recent information released by the Central Bank.

With regard to credit in the sector this year, what is expected is a continuation of this increase, as explained by ABDE’s Sustainability and Economy manager, Kesia Braga. “With regard to 2023, the expectation about credit for civil construction is positive, because we hope that this movement of recovery and reconstruction of the economy, of GDP growth, continues, so this sector is a very strategic sector for the generation of employment and income in the country, and credit responds to the heating up and the recovery of this sector as well, so for 2023 we expect that we will continue in this trend”, he pondered.

Construction credit was the one that showed the greatest growth in the SNF portfolio in December 2022, followed by commerce, with an increase of 18%, and industry, with an increase of 17%.