By Ana Mano
SAO PAULO: An indicator of home building activity in Brazil eroded further in December as a prolonged recession worsened unemployment, wages and home pricing in Latin America’s largest economy.
The Radar Abrainc-Fipe indicator, which groups 12 variables into an index measuring home building activity on a scale of 0 to 10, fell by 0.9 point from a year earlier to 2.4 points, research center Fipe and industry group Abrainc said on Wednesday.
Three of the 12 items that compose the index – employment, wages and home prices – touched the lowest level on record, according to a statement. The index compiles data since January 2004.
Still, the variable reflecting available credit and the economic outlook showed some improvement in December.
The Abrainc-Fipe index reflects the state of Brazil’s housing market through data related to macroeconomic conditions, credit markets and real estate demand.
An index grouping construction and real estate companies trading on the São Paulo Stock Exchange has risen 0.7 percent over the last month. (Editing by Phil Berlowitz)
Source: Reuters