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For the second consecutive month, sales of construction materials fell and the sector's recovery is slowing down - Infobae
Source:
October 08, 2024
According to the Construya Index, the monthly decline was 5.43% and the interannual decline was 22%. The recovery could depend on the reactivation of private works and mortgage credit to expand or refurbish
By Jose Luis Cieri
Renovating your home is still a good option to protect your savings and boost the value of your home (Illustrative Image Infobae)
The Construya Index (IC) , which tracks the evolution of volumes of construction products sold to the private sector, experienced its second consecutive monthly decline in September, after several months of growth. According to the Construya Group, which compiles the index, the decline last month reached 5.43% compared to August and 22% compared to the same month in 2023.
The products considered in this index include ceramic bricks, Portland cement, lime, long steel, aluminum 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 Construya Group, which brings together the leading companies in the sector, noted in its report that cumulative sales from January to September 2024 were 28.6% below the same period of the previous year.
In light of these figures, the entity stated: “After several months of improvements, for the second consecutive month we are facing a reduction in sales of materials for residential construction. We believe that the continuation of the recovery process will be linked to the reactivation of private construction.”
Source: Construya Group
In addition, the impact that the expansion of mortgage credit could have (especially for those who borrow money to build, if they have the land or pre-existing space to be able to do so, expand or renovate the home) and the laundered funds in this context is highlighted.
It should be noted that the ISAC Index (Synthetic Indicator of Construction Activity, measured by INDEC ), which will be published in reference to August 2024, is not directly comparable with the current Construya Index for September. The differences in dates and the parameters used are crucial aspects that must be taken into account when analyzing these economic indices, the segment reported.
This slowdown in price increases is seen after the reduction in inflationary inertia, offering a more stable outlook for those planning new projects.
During high inflation and uncertainty, sales were driven by the need to convert pesos into goods. However, with inflation down, sales are normalizing and depend on the progress of the works.
Pedro Brandi , president of Grupo Construya, told Infobae that in times of high inflation, distributors increased their inventories of non-perishable products such as steel, faucets, appliances and ceramics. Currently, demand is focused mainly on perishable products. “We have not observed significant changes in consumer preferences,” he said.
Porcelain floors, faucets and various products that depend on the dollar (now in decline) such as paints and pastes saw their prices fall by an average of 3% month-on-month.
At this time, the segment suggests that it is a good time to build and renovate, given the current economic situation, as well as a seasonal issue to start projects, especially for those with savings in dollars or access to mortgage loans. “The prices of materials have evolved below inflation since the beginning of the year, and we expect this trend to continue,” said Brandi.
In terms of logistics and supply, one of the main challenges is to keep the promise of delivery in quantity and quality, which is essential for customer satisfaction.
Brandi concluded: “We go to great lengths to select, train and evaluate our logistics providers to address these challenges.”
www.buysellba.com
Source:
October 08, 2024
According to the Construya Index, the monthly decline was 5.43% and the interannual decline was 22%. The recovery could depend on the reactivation of private works and mortgage credit to expand or refurbish
By Jose Luis Cieri
Renovating your home is still a good option to protect your savings and boost the value of your home (Illustrative Image Infobae)
The Construya Index (IC) , which tracks the evolution of volumes of construction products sold to the private sector, experienced its second consecutive monthly decline in September, after several months of growth. According to the Construya Group, which compiles the index, the decline last month reached 5.43% compared to August and 22% compared to the same month in 2023.
The products considered in this index include ceramic bricks, Portland cement, lime, long steel, aluminum 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 Construya Group, which brings together the leading companies in the sector, noted in its report that cumulative sales from January to September 2024 were 28.6% below the same period of the previous year.
In light of these figures, the entity stated: “After several months of improvements, for the second consecutive month we are facing a reduction in sales of materials for residential construction. We believe that the continuation of the recovery process will be linked to the reactivation of private construction.”
Source: Construya Group
In addition, the impact that the expansion of mortgage credit could have (especially for those who borrow money to build, if they have the land or pre-existing space to be able to do so, expand or renovate the home) and the laundered funds in this context is highlighted.
It should be noted that the ISAC Index (Synthetic Indicator of Construction Activity, measured by INDEC ), which will be published in reference to August 2024, is not directly comparable with the current Construya Index for September. The differences in dates and the parameters used are crucial aspects that must be taken into account when analyzing these economic indices, the segment reported.
Between comings and goings
In the construction sector, material prices have seen a more moderate increase over the last three months, with an average fluctuation of between 2% and 4% month-on-month.This slowdown in price increases is seen after the reduction in inflationary inertia, offering a more stable outlook for those planning new projects.
During high inflation and uncertainty, sales were driven by the need to convert pesos into goods. However, with inflation down, sales are normalizing and depend on the progress of the works.
Pedro Brandi , president of Grupo Construya, told Infobae that in times of high inflation, distributors increased their inventories of non-perishable products such as steel, faucets, appliances and ceramics. Currently, demand is focused mainly on perishable products. “We have not observed significant changes in consumer preferences,” he said.
Porcelain floors, faucets and various products that depend on the dollar (now in decline) such as paints and pastes saw their prices fall by an average of 3% month-on-month.
At this time, the segment suggests that it is a good time to build and renovate, given the current economic situation, as well as a seasonal issue to start projects, especially for those with savings in dollars or access to mortgage loans. “The prices of materials have evolved below inflation since the beginning of the year, and we expect this trend to continue,” said Brandi.
In terms of logistics and supply, one of the main challenges is to keep the promise of delivery in quantity and quality, which is essential for customer satisfaction.
Brandi concluded: “We go to great lengths to select, train and evaluate our logistics providers to address these challenges.”
www.buysellba.com
