Construction industry shows high intention to invest in 2024, research shows

Survey

Construction Industry Survey, by CNI, recorded an increase in the investment intention index in inputs, hiring and new ventures

Industrial construction entrepreneurs have registered high goals and expectations for 2024. The Construction Industry Survey, from the National Confederation of Industry (CNI), recorded the highest investment intention index since April 2014. The indicator reached 47.7 points in January 2024, 3.8 points more compared to the result of December 2023, and is positioned 10.5 points above the historical average for the series.

The optimism of the construction industry also appears in the expectation index for purchases of inputs and raw materials, which reached 55.2 points in January 2024, after an increase of 5.1 points compared to the result of December 2023. The indicator of expectation for the number of employees in the construction industry reached 55 points in the month and advanced 4.8 points on the same basis of comparison.

The Survey also shows that there was an increase of 3.6 points in the expectation index for new ventures and services, which then reached 54.6 points.

“This increase in the investment indicator is directly linked to changes in the main problems of 2023. Previously, the lack or high cost of the material, for example, had been harming the investment plans of industrialists”,

explained CNI Economic Analysis Manager, Marcelo Azevedo.

The survey is carried out monthly in partnership with 23 Industry Federations and the Brazilian Chamber of the Construction Industry (CBIC).

Businesspeople are more confident in January 2024

The Construction Industry Business Confidence Index (ICEI) reached 55.5 points in January 2024, after increasing 2.4 points in relation to the December 2023 index.

The Current Conditions Index, one of the components of the ICEI, increased from 47.8 points to 50 points from December 2023 to January 2024. As the index is located on the 50-point dividing line, it indicates a transition in perception of worsening of current conditions towards a perception of stability.

Meanwhile, the Expectation Index increased 2.5 points and reached 58.3 points in the period.

The departure from the 50-point dividing line represents a more intense and widespread expansion of optimism among industrial entrepreneurs.

Among the different sectors of the construction industry, the results are homogeneous: all registered progress, in addition to positioning themselves above the 50-point line.

Interest rate

In the fourth quarter of 2023, the main problem reported by entrepreneurs in the construction industry was high interest rates, with 27.1% reporting. The problem has been one of the main problems faced by the sector for eight quarters, and in the last six quarters it has occupied the first position in the ranking.

Although it remains in first position, the problem presents a reduction in the percentage of flags for the second consecutive quarter. From the third to the fourth quarter of 2023, the drop was 5.6 percentage points.

The high tax burden and the lack or high cost of qualified workers were, respectively, highlighted as second and third in the ranking of main problems in this period.

Financial conditions of the construction industry
Industrial entrepreneurs in the sector expressed satisfaction with the financial situation, which registered 50.3 points in the fourth quarter of 2023, 0.8 points above the third quarter.

Furthermore, other indicators relating to the subject reveal less dissatisfaction with profits, less difficulty in accessing credit, and the perception of more moderate increases in the prices of inputs and raw materials in the last quarter of the year.

More about the Construction Industry Survey

The Construction Industry Survey was launched in 2010, following the model of the Industrial Survey, and aims to understand the trend of activity and the expectations of entrepreneurs in the construction industry.

For this edition, 326 Brazilian companies were interviewed between January 4th and 16th.

*With information from consultancy

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