The dynamics of construction changed: in one year, materials increased by 36.8%

The sharp devaluation of the peso in the second quarter of the year already shows its full impact in the production sectors with dollarized inflows or taking as a reference the US currency. This is the case of the general construction cost index corresponding to Greater Buenos Aires, which climbed by 2.5% last month compared to the previous month, driven by materials, which weigh inputs such as steel, round iron, metal and ironwork, glbad or electricity and gas facilities.

The survey of the National Institute of Statistics and Censuses (INDEC) points out that the cost of construction at a general level increased in the first half. % and accumulates 29.3% in the last twelve months, in line with the movement described by the IPC between July 2017 and June this year, published yesterday by the official statistical agency.

With these figures, It reduces a negative impact on real estate activity, with dollarized selling prices and an acceleration in the cost of construction, an indicator that in many cases governs the updating of quotas in projects funded by the well. To this is added the effect on the economy of increasing the cost of a sector that drives the construction and blow of the budget for public works.

In the item-disaggregated, there was a sharp rise in materials in June, especially those in which the exchange rate is more decisive. In June, the largest increases were recorded in medium and low voltage cables and conductors (12.5%), electric pumps (11.4%), lighting fixtures and electric door openers (10.8%). ), electrical controls (switchboards, switchboards and sockets) with an increase of 10.4% and iron for construction (10.0%). Insulation products (9.2%), faucets (8.5%) and cast iron pipes and fittings (8.3%) also experienced a significant increase

. , stones and aggregates) with 1.5% in the month, raw wood and wood for ceilings and floors (1.9%), bricks and ceramics (3.9%), as well as concrete and cement products, while that faience sanitary ware increased by 4.1%.

With regard to labor, last month saw a 0.7% increase, despite the fact that the collective agreement in force between the construction companies and the Construction Workers' Union (UOCRA) Is not considering any adjustments in June. The next salary increase will be 5% in August

The increase is then attributed to the outsourcing of plastering, painting, sanitary installation and fire fighting, gas installation and electrical installation. The hiring of these other services grew 3.7% in June and 16.0% in the first half, while the year-to-year change in June reached 28.1%.

A report by Economía & Regiones, which badyzes the main indicators of construction, points out that in terms of price, the monthly increase in ICC INDEC showed an increase of 2.7 % (May data), while ACC CAC increased by 3.7%. And he predicts: "We have to expect these price indexes to accelerate their growth in the months to come, following the sharp devaluation of the peso."