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End of summer: after growing for four consecutive months, sales of construction supplies fell 4.3% in August - Infobae
Source:
www.infobae.com
September 05, 2024
This was confirmed by the Construya Index, which is surveyed by various companies that manufacture materials for building and refurbishing homes. The decrease is compared to July. The year-on-year drop amounted to 20.1%.
By Jose Luis Cieri
Little by little, more renovations are beginning to be carried out in the house. Although the sale of materials is not taking off according to the Construya Index (Illustrative Image Infobae)
After showing growth for four consecutive months and generating a kind of summer in activity, the sale of construction supplies reversed the trend in August and showed contraction. According to the Construya Index (IC), the volumes sold fell 4.2% compared to the previous month, in the seasonally adjusted measurement, and were 20.1% below the levels observed in August of last year.
“There was a correction in shipments in August, within a trend towards recovery that has been observed since April,” explained the Construya Group.
The analysis of the average from January to August 2024 shows that the Construya group's shipments were 29.3% lower than those made during the first eight months of 2023. This trend highlights the challenges facing the sector in terms of the stability and growth of its activities.
According to data provided by Construya, the index monitors the evolution of volumes sold to the private sector for construction products manufactured by leading companies in the sector.
Source: Construya Group
These products include ceramic bricks, Portland cement, lime, long steel, aluminium carpentry, adhesives and pastes, waterproofing paints, sanitary ware, boilers and home systems and central heating, taps and systems for water and gas conduction, floors, ceramic coverings and electrical and electronic materials.
“The recessionary context and the economic policies affecting the construction market have reduced demand for private projects and investment in infrastructure. The industry needs investment policies to reactivate the sector. In addition, economic volatility influences the performance of the activity,” the sector reported.
The IC, made up of leading companies, offers key measurements to understand market fluctuations and projections. During this period, sales of essential products for the construction of homes and commercial projects showed declines that indicate the need for reactivation strategies. The segment suggests the implementation of fiscal measures and stimulus policies to improve the situation and allow for sustained growth in the medium term.
Pedro Brandi , president of Grupo Construya, told Infobae that “in periods of high inflation and uncertainty, sales were driven by the tendency to convert pesos into durable goods.” “Currently, with inflation more under control, sales have normalized compared to the beginning of the year, and demand is oriented toward non-perishable products, such as steel, faucets, appliances and ceramics (among others), which do not degrade over time and are seen as a safe investment in the face of currency depreciation,” explained the executive.
Source: Construya Group
Currently, with emerging economic stability, there is an increase in demand for materials that have a limited shelf life or require specific conditions for their preservation, such as some types of paints and adhesives.
Even in a difficult context, Brandi stressed that “it is a good time to start construction and renovation projects, especially for those who have savings in dollars or have access to mortgage loans . For those who are planning these projects, it is an opportune period to take advantage of their capital and the favorable market conditions.”
Regarding the impact of prices on sales of construction materials, they have increased at a slower pace than inflation since the beginning of the year. The materials that rose the most month-on-month were round iron, with 2.15%, and steel pipes, 3% between June and July. Meanwhile, paints, compared to last March, fell between 10% and 15% due to the reduction in sales.
Brandi concluded that this trend of moderate price growth will continue in the coming months, which could positively influence purchasing decisions and the planning of new construction and renovation projects.
www.buysellba.com
Source:
Fin del veranito: tras crecer cuatro meses consecutivos, la venta de insumos para la construcción cayó 4,3 % en agosto
Así lo confirmó el Índice Construya, que es relevado por diversas empresas fabricantes de materiales para edificación y refacción de viviendas. La merma es versus julio. La caída interanual ascendió a 20,1%
www.infobae.com
September 05, 2024
This was confirmed by the Construya Index, which is surveyed by various companies that manufacture materials for building and refurbishing homes. The decrease is compared to July. The year-on-year drop amounted to 20.1%.
By Jose Luis Cieri
Little by little, more renovations are beginning to be carried out in the house. Although the sale of materials is not taking off according to the Construya Index (Illustrative Image Infobae)
After showing growth for four consecutive months and generating a kind of summer in activity, the sale of construction supplies reversed the trend in August and showed contraction. According to the Construya Index (IC), the volumes sold fell 4.2% compared to the previous month, in the seasonally adjusted measurement, and were 20.1% below the levels observed in August of last year.
“There was a correction in shipments in August, within a trend towards recovery that has been observed since April,” explained the Construya Group.
The analysis of the average from January to August 2024 shows that the Construya group's shipments were 29.3% lower than those made during the first eight months of 2023. This trend highlights the challenges facing the sector in terms of the stability and growth of its activities.
According to data provided by Construya, the index monitors the evolution of volumes sold to the private sector for construction products manufactured by leading companies in the sector.
Source: Construya Group
These products include ceramic bricks, Portland cement, lime, long steel, aluminium carpentry, adhesives and pastes, waterproofing paints, sanitary ware, boilers and home systems and central heating, taps and systems for water and gas conduction, floors, ceramic coverings and electrical and electronic materials.
“The recessionary context and the economic policies affecting the construction market have reduced demand for private projects and investment in infrastructure. The industry needs investment policies to reactivate the sector. In addition, economic volatility influences the performance of the activity,” the sector reported.
The IC, made up of leading companies, offers key measurements to understand market fluctuations and projections. During this period, sales of essential products for the construction of homes and commercial projects showed declines that indicate the need for reactivation strategies. The segment suggests the implementation of fiscal measures and stimulus policies to improve the situation and allow for sustained growth in the medium term.
Sector expectations
The sales dynamics of construction materials varied significantly due to the complex economic situation, with real estate developments operating at a slower pace, home renovations beginning to recover and the government slowing down public works.Pedro Brandi , president of Grupo Construya, told Infobae that “in periods of high inflation and uncertainty, sales were driven by the tendency to convert pesos into durable goods.” “Currently, with inflation more under control, sales have normalized compared to the beginning of the year, and demand is oriented toward non-perishable products, such as steel, faucets, appliances and ceramics (among others), which do not degrade over time and are seen as a safe investment in the face of currency depreciation,” explained the executive.
Source: Construya Group
Currently, with emerging economic stability, there is an increase in demand for materials that have a limited shelf life or require specific conditions for their preservation, such as some types of paints and adhesives.
Even in a difficult context, Brandi stressed that “it is a good time to start construction and renovation projects, especially for those who have savings in dollars or have access to mortgage loans . For those who are planning these projects, it is an opportune period to take advantage of their capital and the favorable market conditions.”
Regarding the impact of prices on sales of construction materials, they have increased at a slower pace than inflation since the beginning of the year. The materials that rose the most month-on-month were round iron, with 2.15%, and steel pipes, 3% between June and July. Meanwhile, paints, compared to last March, fell between 10% and 15% due to the reduction in sales.
Brandi concluded that this trend of moderate price growth will continue in the coming months, which could positively influence purchasing decisions and the planning of new construction and renovation projects.
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