Exponential Job Growth Marks May in Construction Industry, Says CNI

Employment Increase Exceeds Historical Average for May, While Construction Industry Activity Stabilizes

May 2023 marked a remarkable advance in employment in the construction industry, as evidenced by the Construction Industry Survey conducted by the National Confederation of Industry (CNI). In a month typically marked by declines in employment, the employment level evolution index in construction surprised, recording 50.7 points, exceeding the historical average of 45.1 points.

Construction Industry Activity Maintains Stability in May

In contrast to the employment trend, construction industry activity remained stable in May, with 49.8 points. Despite being very close to the cutoff line of 50 points, this result signals stability and surpasses the historical average for the month of 46.3 points. According to Marcelo Azevedo, CNI’s Economic Analysis Manager, the near stability of activity in May is an exception, as a decline is generally observed from April to May.

Regarding Capacity Utilization (UCO), there was an increase of 1 percentage point between April and May 2023, ending the month at 67%. This result, besides being positive, exceeds the average UCO for May, which is 62%. Furthermore, this UCO rate is the highest for the month of May since 2014, when operational capacity reached 70%.

Expectation Indices Fall Despite Positive Performance in May

Despite the positive performance observed in May, all expectation indices for the upcoming six months in the construction industry decreased in June 2023. However, even with the decline, the indicators remained above 50 points, indicating optimism, albeit moderate, among industry entrepreneurs.

Investment Intention Drops, but Entrepreneur Confidence Index Rises

The investment intention index of the construction industry recorded a decrease of 1.8 points from May to June 2023, registering 43.6 points. Despite this reduction, the index remains high compared to the average for June, which is 35.1 points.

Contrary to the decline in investment intention, the Entrepreneur Confidence Index (ICEI) of the construction industry rose by 0.3 points in June 2023, moving from 51.9 points to 52.2 points. This variation distances the indicator from the cutoff line of 50 points, signaling that confidence is slightly higher and more widespread among industry entrepreneurs.