Rio, August 5, 2003 (Agência Brasil - ABr) - The National Cost of Construction Index (INCC), compiled by the Brazilian Institute of Geography and Statistics (IBGE), in partnership with the Federal Savings Bank, fell to 0.94% in July, compared with June's figure of 1.53%. According to a note issued by the IBGE, July's index was the smallest since November, 2002.

In July, 2002, the index measured 0.55%. So far this year the cumulative index has risen 10.38%, and, over the last 12 months, 19.06%, as against 5.16% and 8.82%, respectively, for comparable periods in 2002.

According to the IBGE, the national cost per square meter (R$ 441.87) comprised R$ 255.81 in materials and R$ 186.06 in labor. The variation in material costs in July (0.60%) was very close to what was registered in June (0.64%). Labor costs, however, suffered an expressive deceleration in comparison with June (1.40% as against 2.78%). For the year so far, the cumulative indexes for materials and labor have risen at practically the same rate: 10.36% and 10.42%. Over the last 12 months, the cumulate increase in the cost of materials amounts to 23.51%, as against an increase of 13.44% in labor costs. (DAS)