In the seasonally-adjusted series, the national industrial output decreased 0.8% in August 2017 against the immediately previous month. This result interrupted four consecutive months of expansion in the production, a period in which it registered a 3.3% gain.

In the comparison with the same month a year ago in the seasonally-unadjusted series, the overall industry increased 4.0% in August 2017, after also recording positive rates in May (4.5%), June (0.9%) and July (2.9%). The industrial sector posted an increase of 1.5% in the cumulative index in 2017. The cumulative rate in the last 12 months registered a negative change of 0.1% in August 2017, continuing the reduction in the pace of decline started in June 2016 (-9.7%). The complete publication of the survey can be accessed here.

Eight of 24 sectors surveyed drop between July and August

The drop in the industrial activity between July and August 2017 reached two out of the four major economic categories and eight out of the 24 segments surveyed. Among the sectors, the major negative influence was registered by food products (-5.5%), interrupting three consecutive months of expansion in the production, a period in which it recorded a 9.3% gain. Other important negative contributions to the overall industry came from machinery and equipment (-3.8%), coke, petroleum products and biofuels (-1.6%) and mining and quarrying industries (-1.1%). Except for this last activity, which declined for the second month in a row and posted a cumulative loss of 2.4% in this period, the other activities reported positive rates last July: 0.3% and 1.8%, respectively.

Among the 16 sectors that increased the production this month, the most relevant performances came from motor vehicles, trailers and bodies (6.2%) and toiletries, soaps and cleaning and personal hygiene products (5.5%). The former offset the cumulative drop of 3.7% in June and July, and the latter increased once again, after declining 1.5% last month. Other important positive impacts came from the sectors of basic metals (1.9%), tobacco products (15.2%) and pharm-chemicals and pharmaceuticals (2.1%). The first sector reversed the 1.5% decrease reported last month; the second offset the 8.6% cumulative drop in June and July; and the last sector recorded the second consecutive positive rate, adding up to a 6.7% gain in this period.

Among the major economic categories, intermediate goods (-1.0%) and semi and non-durable consumer goods (-0.6%) posted negative rates in August 2017. The former interrupted four consecutive months of increasing production, a period in which it posted a cumulative expansion of 3.6%; and the latter retreated once again, after gaining 3.2% between May and July. On the other hand, the segment of durable consumer goods (4.1%) registered the steepest expansion in August 2017 and accelerated the 2.9% growth obtained last month. The sector producing capital goods (0.5%) also recorded a positive figure in August and reported the fifth month in a row of increasing production, posting a cumulative gain of 10.2%.                                                                                                                                                              

Quarterly moving average registers null change

Still in the seasonally-adjusted series, the evolution of the quarterly moving average index for the overall industry recorded a null change (0.0%) in the quarter ended in August 2017 over the previous month, after posting a cumulative expansion of 1.8% in three consecutive months of positive rates. Among the major economic categories, capital goods (1.2%) registered the highest advance this month and maintained the positive behavior begun in March 2017. The segments of durable consumer goods (0.5%) and semi and non-durable consumer goods (0.4%) also recorded positive figures in August 2017, the former posting the fifth expansion in a row and registering a cumulative gain of 4.7% in this period; and the latter maintaining the upward trend begun in May 2017. The sector producing intermediate goods (0.0%) also recorded a null change in August 2017, after two consecutive months of positive rates: 0.9% in June and 0.5% in July.

Industry rises 4.0% in relation to August 2016

Compared with the same month a year ago, the industrial sector expanded 4.0% in August 2017, recording positive figures in all four major economic categories, 20 out of the 26 sectors, 54 out of the 79 groups and 55.7% of the 805 products surveyed. Among the activities, that of motor vehicles, trailers and bodies (28.2%) exerted the highest negative influence on the industry average. Other relevant positive contributions came from food products (4.7%), computer equipment, electronic and optical products (22.1%), mining and quarrying industries (2.6%), tobacco products (63.0%), rubber and plastic products (4.9%), toiletries, soaps, cleaning and personal hygiene products (11.0%), miscellaneous manufacturing (14.2%) and furniture (12.0%).

Among the six activities that reduced their production, the major influences on the overall industry were reported by coke, petroleum products and biofuels (-3.7%), other transportation equipment (-14.3%), electrical machinery and apparatus (-5.8%) and pharm-chemicals and pharmaceuticals (-5.8%).

Durable consumer goods (18.5%) and capital goods (9.1%) registered the sharpest advances among the major economic categories. Semi and non-durable consumer goods (3.5%) and intermediate goods (2.0%) also reported positive rates.

The segment of durable consumer goods (18.5%) recorded the tenth positive rate in a row and the highest one since last May (20.8%). In August, this sector was particularly leveraged by the increasing manufacture of cars (33.3%). It is worth mentioning the expansion posted by the groups of brown goods (15.1%) and furniture (6.5%), whereas the production of white goods (0.0%) repeated the level registered in the same month last year. Conversely, motorcycles (-13.1%) and other household appliances (-4.9%) reported the most important negative impacts.

Capital goods (9.1%) recorded the fourth consecutive positive figure and the highest one since December last year (16.7%). This segment was influenced, to a great extent, by the advance posted by the group of capital goods for transportation equipment (19.8%). The other positive rates were registered by capital goods for mixed use (30.4%) and for construction (58.0%). On the other hand, the negative impacts were reported by the groups of capital goods for industrial use (-3.8%), for agriculture (-8.7%) and for electricity (-7.9%).

The segment of semi and non-durables increased in August (3.5%) and also last July (4.3%). The performance this month was explained, to a great extent, by the expansion in the group of food and beverages for domestic consumption (4.0%). The sub-sectors of semi-durables (4.7%), fuels (3.8%) and non-durable (1.5%) also registered positive figures in August.

The production of intermediate goods (2.0%) recorded the fourth positive rate in a row and the most intense one since last May (3.6%). This result was mainly explained by the advances of the products associated with the activities of motor vehicles, trailers and bodies (15.3%), mining and quarrying industries (2.6%), food products (3.8%), rubber and plastic products (5.1%), machinery and equipment (10.0%), basic metals (1.6%), pulp, paper and paper products (2.6%), textiles (3.2%), non-metallic mineral products (0.6%) and other chemicals (0.1%), whereas the negative pressures came from coke, petroleum products and biofuels (-7.3%) and fabricated metal products (-3.5%). The result reported by the group of typical inputs for civil construction (-1.9%) marked the 42nd consecutive retreat in this type of comparison, and that of packaging (2.7%) interrupted four consecutive months of dropping production.

Industry advances 1.5% in January-August 2017 period

Compared with the same period in the previous year, the January-August 2017 cumulative index for the industrial sector registered 1.5%, recording positive figures in three out of the four major economic categories, 15 out of the 26 sectors, 45 out of the 79 groups and 52.4% of the 805 products surveyed. Among the activities, motor vehicles, trailers and bodies (13.9%) and mining and quarrying industries (6.6%) exerted the highest positive influence on the industry average. Other relevant positive contributions came from computer equipment, electronic and optical products (20.7%), tobacco products (22.4%), basic metals (2.4%), machinery and equipment (2.7%) and manufacture of wearing apparel and accessories (4.9%).

Among the 11 activities that reduced their output, that of coke, petroleum products and biofuels (-6.6%) posted the biggest negative contribution. It is also worth highlighting the negative figures coming from other transportation equipment (-12.3%), electrical machinery and apparatus (-6.6%), pharm-chemicals and pharmaceuticals (-6.0%), non-metallic mineral products (-4.0%) and printing and reproduction of recorded media (-11.0%).

Among the major economic categories, the profile of results for the first eight months of 2017 had a greater dynamism for durable consumer goods (11.1%) and capital goods (4.4%), leveraged, to a great extent, by the increasing manufacture of cars (18.2%) and household appliances (10.1%), in the former; and of capital goods for transportation equipment (4.1%), for mixed use (16.9%), for construction (30.0%) and for agriculture (13.5%), in the latter. It is worth highlighting the low basis of comparison, since these segments declined 20.0% and 15.2%, respectively, in the January-August 2016 period. The segment of intermediate goods (0.7%) also registered a positive rate in the cumulative index in the year. The sector producing semi and non-durable consumer goods (0.0%) repeated the level recorded in the same period a year ago.