ABRAMAT: Cautious Yet Optimistic Outlook for the Construction Materials Industry in May

São Paulo, June 1, 2023 – ABRAMAT (Brazilian Association of Construction Material Industry) launches today, June 1, the latest edition of its renowned Construction Material Industry Thermometer.

This survey, which seeks insights from industry leaders industry, reveals an increase in optimism among ABRAMAT members, although there is caution in analyzing the results from May. 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”

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For the coming month, anticipation is for an improvement in performance perception, with 54% of member companies expecting good results and 29% anticipating regular performance. The survey also provides consolidated data from April 2023, showing a month of negative results for the sector. For 42% of respondents, April was bad, while 29% rate the month as regular and 13% as very bad.

“Utilization of Installed Capacity and Investment Plans”

Furthermore, ABRAMAT’s Thermometer provides information on the industrial capacity utilization of the materials sector. In May, the industrial capacity was utilized at 70% on average among member companies, 1 percentage point below that in April 2023 and 5 percentage points less than in May 2022.

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

“Our members remain cautious” says Rodrigo Navarro, President of ABRAMAT

The research reveals that the construction materials industry remains vigilant regarding the national economy. “An improvement in the sector’s perception is linked to the definition of the new fiscal framework, but the high interest rate (Selic at 13.75%) and the expectation surrounding concrete advances in structural reforms, such as tax reform, keep our members on alert,” explains Rodrigo Navarro, President of ABRAMAT.

“A Little More About ABRAMAT”

Founded in April 2004, ABRAMAT has actively contributed to the growth of the construction industry 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 from 50 leading companies in the construction material market across the country. ABRAMAT stands out for promoting technical and fiscal compliance, competitiveness and sustainability of the sector, as well as workforce qualification in construction. Its reports are based on official data, surveys with members, internal team analysis, and the exclusive FGV methodology developed specifically for ABRAMAT.