SAO PAULO Dec 27 A widely followed indicator of
homebuilding activity in Brazil remained at a 12-year low in
October, reflecting the burden of a prolonged recession and
eroding confidence among potential homebuyers.
The so-called Radar Abrainc-Fipe indicator, which groups 12
variables into an index measuring homebuilding activity, fell
1.1 points on an annual basis to 2.3 points, the lowest since
records began in January 2004, university research center Fipe
and industry group Abrainc said on Tuesday.
While the variables more closely correlated to consumer
confidence and credit outlook showed some improvement, the
components tied to demand for homebuilding suffered due to
unemployment and salaries eroded by inflation, the statement
said. The indicator dropped 0.1 point from September.
Updated monthly, the Abrainc-Fipe index shows the state of
Brazil's housing market on a scale of 0 to 10, with 10
expressing the most favorable conditions. It reflects a
combination of macroeconomic, credit market and demand data
relative to the Brazilian real estate industry.
An index grouping construction and real estate companies
trading in the São Paulo Stock Exchange fell 7.4 percent
in the last three months.
(Reporting by Ana Mano, editing by Louise Heavens)