Stagflation returns

Stagflation, a term describing a situation where an economy experiences stagnant growth alongside high inflation, has returned, affecting construction artisans in particular. This phenomenon combines slow economic growth with rising prices for goods and services, making it difficult for businesses to maintain profitability.

Construction artisans face challenges

Construction artisans are struggling with the dual pressures of economic stagnation and increasing costs for fuel, materials, and labor. These rising expenses are squeezing profit margins, making it harder for small businesses in the sector to stay afloat.

Activity decline continues

The activity of construction artisan businesses has been declining for the 14th consecutive quarter, indicating a prolonged period of economic weakness. This trend suggests that the sector is facing structural challenges that are not easily resolved through short-term measures.

Latest economic data

According to the economic indicators presented by the Capeb, activity in the construction artisan sector declined by 1% in the third quarter of 2026 compared to the same period the previous year. This follows a 0.5% decrease in the second quarter of 2026, marking a continued downward trend.