São Paulo, June 01, 2023 – ABRAMAT (Brazilian Association of the Construction Materials Industry) launches this Thursday, 01st, the latest edition of its renowned Thermometer of the Construction Materials Industry.

This poll, which seeks insights from industry, reveals an increase in optimism among ABRAMAT members, although there is caution in the analysis of the May results. For 42% of the association's members, May brought a regular performance, while 38% qualify the period as good. The complete study can be accessed through the link.

“Expectations for June and April review”

For the next month, the anticipation is of an improvement in the perception of performance, with 54% of the associated companies predicting a good result and 29% expecting a regular performance. The survey also provides consolidated data for April 2023, showing a month of negative results for the sector. For 42% of those interviewed, April was bad, while 29% classified the month as fair and 13% as very bad.

“Use of Installed Capacity and Investment Plans”

In addition, the ABRAMAT Thermometer provides information on the use of industrial capacity in the materials sector. In May, industrial capacity was used at 70% on the average of associated companies, 1 percentage point lower than in April 2023 and 5 percentage points less than in May 2022.

Investment intentions show a drop in April 2023, with a reduction of 5 percentage points compared to the previous month, evidencing the uncertainty regarding the recovery of investments planned for this year. However, 63% of the material industries indicate that they should invest in the next 12 months, whether to increase production capacity or modernize the means of production. In May last year, this indicator was 70%.

“Our associates remain cautious”, says Rodrigo Navarro, president of ABRAMAT

The survey reveals that the construction materials industry remains vigilant in relation to the national economy. “An improvement in the perception of the sector is linked to the definition of the new fiscal framework, but the high interest rate (Selic at 13,75%) and the expectation around concrete advances in structural reforms, such as the tax one, keep our associates in alert”, clarifies Rodrigo Navarro, president of ABRAMAT.

“A little more about ABRAMAT”

Founded in April 2004, ABRAMAT has actively contributed to the growth of civil construction in Brazil, acting as a link between the sector and the government, as well as other players in the production chain. Currently, the association includes around 400 production units of 50 leading companies in the construction materials market across the country. ABRAMAT stands out for promoting technical and fiscal compliance, the sector's competitiveness and sustainability, and the qualification of the construction workforce. Its reports are based on official data, member surveys, internal team analysis and FGV's exclusive methodology developed especially for ABRAMAT.