Difficult period with the construction sector in crisis. The sector's GDP decline represents the 16th consecutive decline. Companies cannot see improvement.
with the sector civil construction in crisis, GDP in this area had its 16th consecutive drop in the first three months of 2018. This represents the worst performance of the economy this year. The GDP (of this sector) encompasses the total billed by construction companies and the salaries of their employees.
Comparing 2018 with 2017, both in the same period, there was a drop of 2.2%, thus putting in check the hope of improvement in the current scenario in the view of companies.
Civil Construction started 2018 with a reduction in its activities and it is worth noting that it represents more than 50% of Brazil's investments, keeping as a characteristic the enormous generation of manpower. In the last four years it has registered a drop of 20. On any basis of comparison, the results of the sector's GDP show that its activities remain depressed.
The timid pace of Civil Construction activities is justified by the slow process of economic recovery. For the second quarter, the situation tends not to take big steps. Also affected by the great crisis caused by the strike/paralysis of truck drivers, the Civil Construction sector also presents losses in its activities as well as in other sectors of the economy in the country.
The good side of this story is that the wave of layoffs in the construction industry has stopped, but, however, we cannot say when companies will start hiring en masse.
Insecurity in the market
The owner of the construction company MBigucci, Milton Bigucci, points out that the market is very insecure and this makes it difficult for consumers to make decisions and generate new jobs. The pace of investments remains on standby.
Only when he feels that the consumer is more comfortable and willing to invest in a property will he launch his new projects (although he already has at least 6 drawers and has been approved by the City of São Paulo), says Milton.
“The uncertainties in the economy and politics are very strong and the sector feels that the customer is more insecure than at the beginning of the year”, says Bigucci,
Many buyers returned their properties acquired in the plant in the face of the great crisis and this became a great nightmare for the builders. The Civil Construction sector claims a regulated way to minimize losses when a return occurs. The Chamber approved a bill that regulates cancellations.
- With the expectation and hunch of improved sales after the October elections, businessman Alexandre Frankel (builder Vitacon), justifies that the consumer is scared. Your company has 9 projects ready to be launched later this year.
Lack of Investment
Affected by the momentum of the economy, the situation of civil construction in crisis suffers from a lack of investment. The amount/volume of current investment is not even enough to maintain the infrastructure, let alone new constructions. Anyway, even with all the discouragement due to the current economic situation in the country, it is believed that this sector will regain its breath by the end of the year, after the elections.
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