construction industry survey - Portal da Indústria
CNI indicators ISSN 2317-7322 • Year 7 • Number 3 • March 2016
CONSTRUCTION INDUSTRY SURVEY Worsening financial conditions in the first quarter The construction industry has been hit hard by the current Brazilian economic crisis. The challenges go beyond the weak activity and employment levels in the sector, as data from the Construction Industry Survey have shown for the last several months. The financial condition indicators point to a strong and widespread dissatisfaction with profit margins and financial situation. At the same time, companies have had a harder time accessing credit. All of these indices decreased significantly
and hit the lowest levels in their historical series in the first quarter of 2016. The main problems indicated by companies further reinforces concerns about business financial conditions, with high interest rates ranking first, followed by insufficient domestic demand and client delinquency. A high tax burden, which had been the number one problem since the second quarter of 2014, fell to fourth place.
Indices of satisfaction with profit margins* and financial situation**. Diffusion indices (0-100 points)
Satisfaction
Profit margins in the quarter
50
45.7 Insatisfaction
Financial situation in the quarter Dividing line
38.3
41.6
36.4 33.3
34.7
I 2014
II
III
IV
I 2015
32.2
II
III
IV
28.8
I 2016
* The indicators range from 0 to 100. Figures above 50 points indicate satisfaction with profit margins. ** The indicators range from 0 to 100. Figures above 50 points indicate satisfaction with financial situation.
Construction Industry Survey ISSN 2317-7322 • Year 7 • Number 3 • March 2016
CONSTRUCTION INDUSTRY PERFORMANCE IN MARCH 2016
Activity level and number of employees keep falling The indices of activity level and number of employees remain significantly below the 50-point dividing line, indicating a monthover-month decline in both activity and jobs. From February to March 2016, the activity and
employment indicators increased by 2.3 points and 1.1 points, respectively, standing at 37.5 points and 36.6 points. The rise in the indices in March indicates that both activity and jobs have fallen at a slower pace.
Activity level Diffusion indices (0-100 points)
Increase 50
Decrease
35.9
SEP 2015
36.7
OCT
37.5
36.3
NOV
33.3
33.6
DEC
JAN 2016
35.2 FEB
MAR
* The indicators range from 0 to 100. Figures above 50 points indicate a month-over-month increase in activity levels.
Size The increase in the employment indicator was driven by a 2.5-point growth in the index for large companies. The index for small enterprises fell by 0.8 points, while that for medium firms held steady.
Actual-usual activity levels and operating capacity utilization remain at very low levels The indicator of actual-usual activity levels increased from 25.3 points in February to 26.3 in March, interrupting the downward trend observed since May 2015. The indicators range from 0 to 100, with figures below 50 indicating that activity is below usual levels for the month. The further below 50 points, the more activity is below usual levels.
2
Operating capacity utilization remains at very low levels, confirming a scenario of weak construction activity. In March, the indicator hit the mark of 57%, up by one percentage point from the figure observed in February, but down by 10 points from the historical average for March.
Construction Industry Survey ISSN 2317-7322 • Year 7 • Number 3 • March 2016
FINANCIAL CONDITIONS IN CONSTRUCTION INDUSTRY IN THE FIRST QUARTER OF 2016
Construction entrepreneurs dissatisfied with financial conditions Entrepreneurs are concerned about their companies’ financial situation. The index of satisfaction with profit margins fell by 3.4 points between the fourth quarter of 2015 and the first quarter of 2016, standing at 28.8 points. On the same comparison basis, the index of satisfaction with financial situation fell by 3.1 points to 33.3 points.
Both indices are at all-time lows and significantly below the 50-point dividing line, showing that entrepreneurs are greatly dissatisfied with their companies’ profit margins and financial situation. The indicators range from 0 to 100, with readings below 50 indicating dissatisfaction. The lower the index, the greater the dissatisfaction.
Increasingly difficult to access credit Construction companies have faced increasing difficulties to access credit, as shown by the index of ease of access to credit, which stood at 23.1 points in the first quarter of 2016, down by 2.8 points from the previous quarter. This figure
represents an all-time low in the series started in the fourth quarter of 2009. The further below the 50-point dividing line, the more serious and widespread the difficulties faced by companies to access credit.
Index of ease of access to credit* Diffusion indices (0-100 points)
Easy 50
40.8 31.7
Difficult
25.9
I 2014
II
III
IV
I 2015
II
III
* The index ranges from 0 to 100. Figures above 50 points indicate ease of access to credit.
3
IV
23.1
I 2016
Construction Industry Survey ISSN 2317-7322 • Year 7 • Number 3 • March 2016
PROBLEMS FACED BY THE CONSTRUCTION INDUSTRY IN THE FIRST QUARTER OF 2016
High interest rates jump to first place in ranking of major problems Companies indicated high interest rates as the number one problem faced by the construction industry in the first quarter 2016. The item was mentioned by 39.4% of entrepreneurs. Insufficient domestic demand and client delinquency come next, with 35.7% and 31.1% of answers, respectively.
Another highlight of the first quarter of 2016 was the issue of high tax burden, which ranked first in the previous quarter with 39% of answers and fell to fourth place with 31% of responses.
Main problems faced by the construction industry in the quarter (%) Percentage (%)
39.4 36.9
High interest rates
35.7 35.3
Insufficient domestic demand 31.1 30.7
Client delinquency
31.0
High tax burden Lack of working capital
22.9
39.0
28.3
17.1 19.5
Excessive red tape 12.9 12.0
Lack of long-term funding Legal uncertainty
8.8
11.7
9.8 8.1
Unfair competition (informality, smuggling, etc.) Lack or high cost of skilled labor
8.6 10.2
Lack or high cost of raw materials
8.5 9.8
Lack or high cost of unskilled labor
6.3 6.3
Environmental licensing
4.3 6.8 3.8 5.6
Lack or high cost of energy
3.3
Weather conditions
7.3
1.5 1.8
Difficulties in transportation logistics (roads, etc.) Lack or high cost of support equipment
0.9 1.0
Availability of land
0.8 0.9
Q1 2016 Q4 2015
Other
8.3 8.9
None
11.3 8.7
* Each company may indicate up to three items, so the sum of percentages exceeds 100%.
4
Construction Industry Survey ISSN 2317-7322 • Year 7 • Number 3 • March 2016
EXPECTATIONS OF CONSTRUCTION INDUSTRY IN APRIL 2016
Pessimism remains high Entrepreneurs are still pessimistic, with the indices of expected activity levels and new developments and services fluctuating within the margin of error and reaching 39.7 points and 37.7 points, respectively, in April. The indices
of expected number of employees and purchases of inputs and raw materials fell by one point between March and April after increasing for two consecutive months, standing at 38.2 points and 38.3 points, respectively.
Index of expected activity levels*
Index of expected new developments and services** Increase
Increase 50
50
44.1 Decrease
39.7
JUN
APR 2015
AUG
OCT
DEC
FEB 2016
43.1
Decrease
37.7
APR
JUN
APR 2015
Expectativa do nível de atividade Linha divisória
AUG
OCT
DEC
FEB 2016
APR
Expectativa de novos empreendimentos e serviços Linha divisória
Indices of expected purchases of inputs and raw materials
Index of expected number of employees*** Increase
Increase
50
50
43.5
Decrease
Decrease
42.6 38.2
38.3
APR 2015
JUN
AUG
OCT
DEC
FEB 2016
APR 2015
APR
Expectativa de compras de insumos e matérias-primas Linha divisória
JUN
AUG
OCT
DEC
Expectativa do número de empregados Linha divisória
* The indicators range from 0 to 100, with readings above 50 indicating an expected increase in activity levels. * The indicators range from 0 to 100, with readings above 50 indicating an expected increase in new developments and services. * The indicators range from 0 to 100, with readings above 50 indicating an expected increase in purchases of inputs and raw materials. * The indicators range from 0 to 100, with readings above 50 indicating an expected increase in number of employees.
5
FEB 2016
APR
Construction Industry Survey ISSN 2317-7322 • Year 7 • Number 3 • March 2016
Investment intentions remain low Investment intentions*
The investment intention index has reached a record low in the series for the second consecutive month. In April, the index stood at 23.4 points, down by 0.1 points from March. The weak activity in the segment, coupled with low operating capacity rates and still very pessimistic expectations, inhibits any improvement in this indicator.
Diffusion indices (0-100 points)
60
55.2
50
49.5
40
34.4
30
* The indicators range from 0 to 100. The higher the index, the greater the dissatisfaction.
23.4 MAR 2014
NOV 2013
JUL
MAR 2015
NOV
JUL
NOV
MAR 2016
Results by company size Monthly evolution of construction industry Operation Capacity Utilization (%) 1
Activity Level 2
Actual-Usual Activity Level3
Number of Employees2
MAR/15
FEB/16
MAR/16
MAR/15
FEB/16
MAR/16
MAR/15
FEB/16
MAR/16
MAR/15
FEB/16
MAR/16
60
56
57
37.9
35.2
37.5
30.6
25.3
26.3
37.2
35.5
36.6
SMALL
57
52
54
38.5
35.7
36.7
33.8
28.2
28.3
39.1
36.6
35.8
MEDIUM
60
54
55
39.3
36.7
39.0
31.2
26.0
27.1
38.5
37.4
37.4
LARGE
62
58
60
36.8
34.2
36.9
29.1
23.8
25.2
35.7
34.0
36.5
CONSTRUCTION
Financial conditions in the quarter Satisfaction with Profits4
Average Prices of Raw Materials Evolution4
Satisfaction with Financial Situation4
Ease to Access Credit5
I-15
IV-15
I-16
I-15
IV-15
I-16
I-15
IV-15
I-16
I-15
IV-15
I-16
34.7
32.2
28.8
64.3
61.5
59.8
38.3
36.4
33.3
31.7
25.9
23.1
SMALL
35.6
33.7
30.4
63.7
57.1
55.9
38.5
36
33.9
32.1
28.8
26.6
MEDIUM
33.0
31.1
26.3
66.1
65.1
60.6
36.4
35.8
31.4
30.2
24.3
24.7
LARGE
35.4
32.3
29.7
63.5
61.1
60.7
39.3
36.8
34.1
32.4
25.8
20.9
CONSTRUCTION
Expectations New Developments and Services4
Activity Level4 APR/15
MAR/16 APR/16
APR/15
MAR/16 APR/16
Purchases of Inputs and Raw Materials4 APR/15
Number of Employees4
MAR/16 APR/16
APR/15
MAR/16 APR/16
Investiment Intention5 APR/15
MAR/16 APR/16
44.1
40.6
39.7
43.1
38.1
37.7
43.5
39.3
38.3
42.6
39.2
38.2
34.4
23.5
23.4
SMALL
45.9
41.5
42.7
45.4
38.7
40.6
45.3
38.4
40.9
45.3
41.0
41.2
36.2
24.0
22.5
MEDIUM
43.8
40.6
40.8
44.3
40.2
39.7
43.0
39.7
39.0
42.8
40.0
38.3
34.2
23.7
22.8
LARGE
43.7
40.3
37.9
41.5
36.7
35.5
43.2
39.4
37.0
41.4
38.1
37.0
33.8
23.2
24.0
CONSTRUCTION
1 The indicator varies in the 0%-100% interval. Series started in January 2012. 2 The indicator varies in the 0-100 interval. Figures above 50 points indicate growth. 3 The indicator varies in the 0-100 interval. Figures above 50 points indicate higher-than-usual activity levels.
6
4 The indicator varies in the 0-100 interval. Figures above 50 points indicate positive expectations. 5 The higher the index, the greater the willingness to invest.
Construction Industry Survey ISSN 2317-7322 • Year 7 • Number 3 • March 2016
Results by company size Main problems Construction IV-15
Small
I-16
IV-15
Medium
I-16
IV-15
Large
I-16
IV-15
I-16
%
%
Ranking
%
%
Ranking
%
%
Ranking
%
%
Ranking
High interest rates
36.9
39.4
1
34.9
34.1
1
30.6
38.2
1
41.1
42.1
1
Insufficient domestic demand
35.3
35.7
2
23.8
28.0
3
31.0
33.5
3
41.9
39.8
2
Client delinquency
30.7
31.1
3
27.9
26.9
4
25.4
29.1
4
34.7
33.8
3
High tax burden
39.0
31.0
4
33.7
33.0
2
42.7
35.4
2
38.7
27.8
5
Lack of working capital
22.9
28.3
5
19.2
25.8
5
24.6
28.0
5
23.4
29.3
4
Excessive red tape
19.5
17.1
6
18.0
22.0
6
22.2
18.9
6
18.5
14.3
7
Lack of long-term funding
12.0
12.9
7
12.8
12.1
9
16.9
12.2
7
8.9
13.5
8
Legal uncertainty
8.8
11.7
8
4.7
5.5
13
11.3
9.8
9
8.9
15.0
6
Unfair competition (informality, smuggling, etc.)
8.1
9.8
9
9.9
14.8
7
9.7
11.8
8
6.5
6.8
11
Lack or high cost of skilled workers
10.2
8.6
10
12.2
11.0
10
11.3
9.1
10
8.9
7.5
10
Lack or high cost of raw materials
9.8
8.5
11
14.5
13.2
8
9.7
8.7
11
8.1
6.8
11
Others
8.9
8.3
12
7.6
8.2
11
9.7
8.3
12
8.9
8.3
9
Lack or high cost of unskilled workers
6.3
6.3
13
5.2
4.9
15
8.1
6.3
13
5.6
6.8
11
Environmental licensing
6.8
4.3
14
4.7
2.2
16
7.3
5.1
14
7.3
4.5
14
Lack or high cost of energy
5.6
3.8
15
9.3
6.6
12
7.3
4.7
16
3.2
2.3
15
Weather conditions
7.3
3.3
16
7.0
5.5
13
7.7
5.1
14
7.3
1.5
16
Difficulties in transportation logistics (roads, etc.)
1.8
1.5
17
1.2
2.2
16
2.4
1.2
17
1.6
1.5
16
Lack or high cost of support equipment
1.0
0.9
18
2.3
1.6
18
2.0
0.8
18
-
0.8
18
Availability of land
0.9
0.8
19
2.3
1.1
19
1.6
0.8
18
-
0.8
18
None
8.7
11.3
-
13.4
15.4
-
6.9
8.7
-
8.1
11.3
-
ITEMS
i
Learn more For more information on the survey, including historical series and methodology, kindly visit: www.cni.org.br/e_sondconstr
Technical specifications Sample profile: 573 enterprises, including 182 small, 257 medium and 134 large companies. Data collection period: April 1-13, 2016.
CONSTRUCTION INDUSTRY SURVEY | English version of Sondagem Indústria da Construção, March 2016 | Monthly Publication of the National Confederation of Industry - CNI | www.cni. org.br | Policy and Strategy Unit - DIRPE | Economic Policy Unit - PEC| Executive manager: Flávio Castelo Branco | Research and Competitiveness Unit - GPC | Executive manager: Renato da Fonseca | Team: Flávia Junqueira Ferraz, Roxana Campos, Aretha Silícia Lopez Soares and Luis Fernando Melo Mendes (CBIC) | CNI Publishing Center | Graphic design supervision: Alisson Costa | Customer Service - Phone: +55 (61) 3317-9992 – email: [email protected] | This publication may be copied, provided that the source is mentioned.
CONSTRUCTION INDUSTRY SURVEY Worsening financial conditions in the first quarter The construction industry has been hit hard by the current Brazilian economic crisis. The challenges go beyond the weak activity and employment levels in the sector, as data from the Construction Industry Survey have shown for the last several months. The financial condition indicators point to a strong and widespread dissatisfaction with profit margins and financial situation. At the same time, companies have had a harder time accessing credit. All of these indices decreased significantly
and hit the lowest levels in their historical series in the first quarter of 2016. The main problems indicated by companies further reinforces concerns about business financial conditions, with high interest rates ranking first, followed by insufficient domestic demand and client delinquency. A high tax burden, which had been the number one problem since the second quarter of 2014, fell to fourth place.
Indices of satisfaction with profit margins* and financial situation**. Diffusion indices (0-100 points)
Satisfaction
Profit margins in the quarter
50
45.7 Insatisfaction
Financial situation in the quarter Dividing line
38.3
41.6
36.4 33.3
34.7
I 2014
II
III
IV
I 2015
32.2
II
III
IV
28.8
I 2016
* The indicators range from 0 to 100. Figures above 50 points indicate satisfaction with profit margins. ** The indicators range from 0 to 100. Figures above 50 points indicate satisfaction with financial situation.
Construction Industry Survey ISSN 2317-7322 • Year 7 • Number 3 • March 2016
CONSTRUCTION INDUSTRY PERFORMANCE IN MARCH 2016
Activity level and number of employees keep falling The indices of activity level and number of employees remain significantly below the 50-point dividing line, indicating a monthover-month decline in both activity and jobs. From February to March 2016, the activity and
employment indicators increased by 2.3 points and 1.1 points, respectively, standing at 37.5 points and 36.6 points. The rise in the indices in March indicates that both activity and jobs have fallen at a slower pace.
Activity level Diffusion indices (0-100 points)
Increase 50
Decrease
35.9
SEP 2015
36.7
OCT
37.5
36.3
NOV
33.3
33.6
DEC
JAN 2016
35.2 FEB
MAR
* The indicators range from 0 to 100. Figures above 50 points indicate a month-over-month increase in activity levels.
Size The increase in the employment indicator was driven by a 2.5-point growth in the index for large companies. The index for small enterprises fell by 0.8 points, while that for medium firms held steady.
Actual-usual activity levels and operating capacity utilization remain at very low levels The indicator of actual-usual activity levels increased from 25.3 points in February to 26.3 in March, interrupting the downward trend observed since May 2015. The indicators range from 0 to 100, with figures below 50 indicating that activity is below usual levels for the month. The further below 50 points, the more activity is below usual levels.
2
Operating capacity utilization remains at very low levels, confirming a scenario of weak construction activity. In March, the indicator hit the mark of 57%, up by one percentage point from the figure observed in February, but down by 10 points from the historical average for March.
Construction Industry Survey ISSN 2317-7322 • Year 7 • Number 3 • March 2016
FINANCIAL CONDITIONS IN CONSTRUCTION INDUSTRY IN THE FIRST QUARTER OF 2016
Construction entrepreneurs dissatisfied with financial conditions Entrepreneurs are concerned about their companies’ financial situation. The index of satisfaction with profit margins fell by 3.4 points between the fourth quarter of 2015 and the first quarter of 2016, standing at 28.8 points. On the same comparison basis, the index of satisfaction with financial situation fell by 3.1 points to 33.3 points.
Both indices are at all-time lows and significantly below the 50-point dividing line, showing that entrepreneurs are greatly dissatisfied with their companies’ profit margins and financial situation. The indicators range from 0 to 100, with readings below 50 indicating dissatisfaction. The lower the index, the greater the dissatisfaction.
Increasingly difficult to access credit Construction companies have faced increasing difficulties to access credit, as shown by the index of ease of access to credit, which stood at 23.1 points in the first quarter of 2016, down by 2.8 points from the previous quarter. This figure
represents an all-time low in the series started in the fourth quarter of 2009. The further below the 50-point dividing line, the more serious and widespread the difficulties faced by companies to access credit.
Index of ease of access to credit* Diffusion indices (0-100 points)
Easy 50
40.8 31.7
Difficult
25.9
I 2014
II
III
IV
I 2015
II
III
* The index ranges from 0 to 100. Figures above 50 points indicate ease of access to credit.
3
IV
23.1
I 2016
Construction Industry Survey ISSN 2317-7322 • Year 7 • Number 3 • March 2016
PROBLEMS FACED BY THE CONSTRUCTION INDUSTRY IN THE FIRST QUARTER OF 2016
High interest rates jump to first place in ranking of major problems Companies indicated high interest rates as the number one problem faced by the construction industry in the first quarter 2016. The item was mentioned by 39.4% of entrepreneurs. Insufficient domestic demand and client delinquency come next, with 35.7% and 31.1% of answers, respectively.
Another highlight of the first quarter of 2016 was the issue of high tax burden, which ranked first in the previous quarter with 39% of answers and fell to fourth place with 31% of responses.
Main problems faced by the construction industry in the quarter (%) Percentage (%)
39.4 36.9
High interest rates
35.7 35.3
Insufficient domestic demand 31.1 30.7
Client delinquency
31.0
High tax burden Lack of working capital
22.9
39.0
28.3
17.1 19.5
Excessive red tape 12.9 12.0
Lack of long-term funding Legal uncertainty
8.8
11.7
9.8 8.1
Unfair competition (informality, smuggling, etc.) Lack or high cost of skilled labor
8.6 10.2
Lack or high cost of raw materials
8.5 9.8
Lack or high cost of unskilled labor
6.3 6.3
Environmental licensing
4.3 6.8 3.8 5.6
Lack or high cost of energy
3.3
Weather conditions
7.3
1.5 1.8
Difficulties in transportation logistics (roads, etc.) Lack or high cost of support equipment
0.9 1.0
Availability of land
0.8 0.9
Q1 2016 Q4 2015
Other
8.3 8.9
None
11.3 8.7
* Each company may indicate up to three items, so the sum of percentages exceeds 100%.
4
Construction Industry Survey ISSN 2317-7322 • Year 7 • Number 3 • March 2016
EXPECTATIONS OF CONSTRUCTION INDUSTRY IN APRIL 2016
Pessimism remains high Entrepreneurs are still pessimistic, with the indices of expected activity levels and new developments and services fluctuating within the margin of error and reaching 39.7 points and 37.7 points, respectively, in April. The indices
of expected number of employees and purchases of inputs and raw materials fell by one point between March and April after increasing for two consecutive months, standing at 38.2 points and 38.3 points, respectively.
Index of expected activity levels*
Index of expected new developments and services** Increase
Increase 50
50
44.1 Decrease
39.7
JUN
APR 2015
AUG
OCT
DEC
FEB 2016
43.1
Decrease
37.7
APR
JUN
APR 2015
Expectativa do nível de atividade Linha divisória
AUG
OCT
DEC
FEB 2016
APR
Expectativa de novos empreendimentos e serviços Linha divisória
Indices of expected purchases of inputs and raw materials
Index of expected number of employees*** Increase
Increase
50
50
43.5
Decrease
Decrease
42.6 38.2
38.3
APR 2015
JUN
AUG
OCT
DEC
FEB 2016
APR 2015
APR
Expectativa de compras de insumos e matérias-primas Linha divisória
JUN
AUG
OCT
DEC
Expectativa do número de empregados Linha divisória
* The indicators range from 0 to 100, with readings above 50 indicating an expected increase in activity levels. * The indicators range from 0 to 100, with readings above 50 indicating an expected increase in new developments and services. * The indicators range from 0 to 100, with readings above 50 indicating an expected increase in purchases of inputs and raw materials. * The indicators range from 0 to 100, with readings above 50 indicating an expected increase in number of employees.
5
FEB 2016
APR
Construction Industry Survey ISSN 2317-7322 • Year 7 • Number 3 • March 2016
Investment intentions remain low Investment intentions*
The investment intention index has reached a record low in the series for the second consecutive month. In April, the index stood at 23.4 points, down by 0.1 points from March. The weak activity in the segment, coupled with low operating capacity rates and still very pessimistic expectations, inhibits any improvement in this indicator.
Diffusion indices (0-100 points)
60
55.2
50
49.5
40
34.4
30
* The indicators range from 0 to 100. The higher the index, the greater the dissatisfaction.
23.4 MAR 2014
NOV 2013
JUL
MAR 2015
NOV
JUL
NOV
MAR 2016
Results by company size Monthly evolution of construction industry Operation Capacity Utilization (%) 1
Activity Level 2
Actual-Usual Activity Level3
Number of Employees2
MAR/15
FEB/16
MAR/16
MAR/15
FEB/16
MAR/16
MAR/15
FEB/16
MAR/16
MAR/15
FEB/16
MAR/16
60
56
57
37.9
35.2
37.5
30.6
25.3
26.3
37.2
35.5
36.6
SMALL
57
52
54
38.5
35.7
36.7
33.8
28.2
28.3
39.1
36.6
35.8
MEDIUM
60
54
55
39.3
36.7
39.0
31.2
26.0
27.1
38.5
37.4
37.4
LARGE
62
58
60
36.8
34.2
36.9
29.1
23.8
25.2
35.7
34.0
36.5
CONSTRUCTION
Financial conditions in the quarter Satisfaction with Profits4
Average Prices of Raw Materials Evolution4
Satisfaction with Financial Situation4
Ease to Access Credit5
I-15
IV-15
I-16
I-15
IV-15
I-16
I-15
IV-15
I-16
I-15
IV-15
I-16
34.7
32.2
28.8
64.3
61.5
59.8
38.3
36.4
33.3
31.7
25.9
23.1
SMALL
35.6
33.7
30.4
63.7
57.1
55.9
38.5
36
33.9
32.1
28.8
26.6
MEDIUM
33.0
31.1
26.3
66.1
65.1
60.6
36.4
35.8
31.4
30.2
24.3
24.7
LARGE
35.4
32.3
29.7
63.5
61.1
60.7
39.3
36.8
34.1
32.4
25.8
20.9
CONSTRUCTION
Expectations New Developments and Services4
Activity Level4 APR/15
MAR/16 APR/16
APR/15
MAR/16 APR/16
Purchases of Inputs and Raw Materials4 APR/15
Number of Employees4
MAR/16 APR/16
APR/15
MAR/16 APR/16
Investiment Intention5 APR/15
MAR/16 APR/16
44.1
40.6
39.7
43.1
38.1
37.7
43.5
39.3
38.3
42.6
39.2
38.2
34.4
23.5
23.4
SMALL
45.9
41.5
42.7
45.4
38.7
40.6
45.3
38.4
40.9
45.3
41.0
41.2
36.2
24.0
22.5
MEDIUM
43.8
40.6
40.8
44.3
40.2
39.7
43.0
39.7
39.0
42.8
40.0
38.3
34.2
23.7
22.8
LARGE
43.7
40.3
37.9
41.5
36.7
35.5
43.2
39.4
37.0
41.4
38.1
37.0
33.8
23.2
24.0
CONSTRUCTION
1 The indicator varies in the 0%-100% interval. Series started in January 2012. 2 The indicator varies in the 0-100 interval. Figures above 50 points indicate growth. 3 The indicator varies in the 0-100 interval. Figures above 50 points indicate higher-than-usual activity levels.
6
4 The indicator varies in the 0-100 interval. Figures above 50 points indicate positive expectations. 5 The higher the index, the greater the willingness to invest.
Construction Industry Survey ISSN 2317-7322 • Year 7 • Number 3 • March 2016
Results by company size Main problems Construction IV-15
Small
I-16
IV-15
Medium
I-16
IV-15
Large
I-16
IV-15
I-16
%
%
Ranking
%
%
Ranking
%
%
Ranking
%
%
Ranking
High interest rates
36.9
39.4
1
34.9
34.1
1
30.6
38.2
1
41.1
42.1
1
Insufficient domestic demand
35.3
35.7
2
23.8
28.0
3
31.0
33.5
3
41.9
39.8
2
Client delinquency
30.7
31.1
3
27.9
26.9
4
25.4
29.1
4
34.7
33.8
3
High tax burden
39.0
31.0
4
33.7
33.0
2
42.7
35.4
2
38.7
27.8
5
Lack of working capital
22.9
28.3
5
19.2
25.8
5
24.6
28.0
5
23.4
29.3
4
Excessive red tape
19.5
17.1
6
18.0
22.0
6
22.2
18.9
6
18.5
14.3
7
Lack of long-term funding
12.0
12.9
7
12.8
12.1
9
16.9
12.2
7
8.9
13.5
8
Legal uncertainty
8.8
11.7
8
4.7
5.5
13
11.3
9.8
9
8.9
15.0
6
Unfair competition (informality, smuggling, etc.)
8.1
9.8
9
9.9
14.8
7
9.7
11.8
8
6.5
6.8
11
Lack or high cost of skilled workers
10.2
8.6
10
12.2
11.0
10
11.3
9.1
10
8.9
7.5
10
Lack or high cost of raw materials
9.8
8.5
11
14.5
13.2
8
9.7
8.7
11
8.1
6.8
11
Others
8.9
8.3
12
7.6
8.2
11
9.7
8.3
12
8.9
8.3
9
Lack or high cost of unskilled workers
6.3
6.3
13
5.2
4.9
15
8.1
6.3
13
5.6
6.8
11
Environmental licensing
6.8
4.3
14
4.7
2.2
16
7.3
5.1
14
7.3
4.5
14
Lack or high cost of energy
5.6
3.8
15
9.3
6.6
12
7.3
4.7
16
3.2
2.3
15
Weather conditions
7.3
3.3
16
7.0
5.5
13
7.7
5.1
14
7.3
1.5
16
Difficulties in transportation logistics (roads, etc.)
1.8
1.5
17
1.2
2.2
16
2.4
1.2
17
1.6
1.5
16
Lack or high cost of support equipment
1.0
0.9
18
2.3
1.6
18
2.0
0.8
18
-
0.8
18
Availability of land
0.9
0.8
19
2.3
1.1
19
1.6
0.8
18
-
0.8
18
None
8.7
11.3
-
13.4
15.4
-
6.9
8.7
-
8.1
11.3
-
ITEMS
i
Learn more For more information on the survey, including historical series and methodology, kindly visit: www.cni.org.br/e_sondconstr
Technical specifications Sample profile: 573 enterprises, including 182 small, 257 medium and 134 large companies. Data collection period: April 1-13, 2016.
CONSTRUCTION INDUSTRY SURVEY | English version of Sondagem Indústria da Construção, March 2016 | Monthly Publication of the National Confederation of Industry - CNI | www.cni. org.br | Policy and Strategy Unit - DIRPE | Economic Policy Unit - PEC| Executive manager: Flávio Castelo Branco | Research and Competitiveness Unit - GPC | Executive manager: Renato da Fonseca | Team: Flávia Junqueira Ferraz, Roxana Campos, Aretha Silícia Lopez Soares and Luis Fernando Melo Mendes (CBIC) | CNI Publishing Center | Graphic design supervision: Alisson Costa | Customer Service - Phone: +55 (61) 3317-9992 – email: [email protected] | This publication may be copied, provided that the source is mentioned.
