Brazil economic trends show rising consumer debt and shifting construction costs

Economic indicators in Brazil show varying trends across different sectors. In the construction industry, the National System of Research on Construction Costs and Indices (Sinapi) reported that the average cost per square meter rose to R$ 1,862.67 in Rio Grande do Norte in July, with a year-to-date increase of 6.46%. Nationally, the INCC/Sinapi index rose 0.44% in July, reaching R$ 1,985.10 per square meter. In Paraíba, construction costs saw a minimal increase of 0.15%, the lowest in the country, though the state maintains the second-highest cost per square meter in the Northeast at R$ 1,917.12.

Consumer debt is also a growing concern, with the delinquency rate reaching 9.45% in July. This rise is attributed to high interest rates, income loss, and economic uncertainty. Additionally, new US tariffs on Brazilian products, such as footwear, are expected to increase pressure on the retail sector and potentially impact employment.

In the Northeast region, water infrastructure projects are progressing, with federal teams monitoring works in Rio Grande do Norte to ensure water security for several municipalities.