Rio, November 4, 2003 (Agência Brasil - ABr) - Construction costs rose 0.60% in October. The cost per square meter comes to R$ 450.94, according to the National Cost of Construction Index, released today by the Brazilian Institute of Geography and Statistics (IBGE). In relation to October, 2002, however, there was a drop of 0.26%.

The regions in which the cost rose the most, in comparison with September, were the North (1.17%), South (1.11%), and Center-East (1.04%), as a consequence of collective bargaining agreements.

In the composition of the national cost, R$ 259.33 represent the cost of materials, and R$ 191.61, the cost of labor. In October the materials portion registered an increase of 0.69%, compared with 0.32% in September.

The National Cost of Construction Index is calculated monthly by the IBGE, in partnership with the Federal Savings Bank, and is based on the National System for Studying Construction Costs and Indexes (SINAPI). It serves as a reference for the government in its expenditures on public works. (DAS)