Brazil construction activity index falls to 44.7 in August

The activity index for Brazil's construction industry fell by 2.6 points from July to August 2026, dropping from 47.3 to 44.7 points. The result stands 2.9 points below the historical average for August, according to the Construction Industry Survey released by the National Confederation of Industry (CNI) in partnership with the Brazilian Chamber of the Construction Industry (CBIC) on September 23, 2026.

Capacity utilisation in the sector decreased to 65% in August from 66% in July, marking its second consecutive monthly decline. The metric was 1 percentage point below August 2025 levels, although it remained above the historical August average of 63%. Meanwhile, the employment evolution index fell 2.5 points to 45.8 points from 48.3 points in July, standing 0.7 points below its August average and recording its lowest level for the month since 2017.

Marcelo Azevedo, economic analysis manager at CNI, stated that high interest rates and rising costs have reduced sector momentum throughout 2026, alongside heightened uncertainty linked to upcoming elections.

All four industry expectation indices weakened in September and fell below the 50-point threshold separating expansion from contraction. The expected activity level dropped 3.6 points to 47 points, expected headcount fell 2 points to 48 points, purchases of inputs and raw materials decreased 4.3 points to 45.8 points, and new projects and services dropped 2.6 points to 46.1 points. The investment intention index decreased 2.7 points to 39.7 points, its lowest September reading since 2019, while the Construction Business Confidence Index (ICEI) fell 1.7 points to 45.5 points.

The CNI survey gathered data from 313 companies, including 120 small, 128 medium, and 65 large firms, between September 1 and September 11, 2026.