In the seasonally-adjusted series, the national industrial output fell 0.2% in May 2019 against April, offsetting part of the increase of 0.3% in the previous month. In the seasonally-unadjusted series, the industry increased 7.1% compared with May 2018, after registering drops in March (-6.2%) and April (-3.9%). As a result, the industrial sector accrued a loss of 0.7% over the first five months of 2019. Having changed from -1.1% in April to 0.0% in May, the cumulative index over the last 12 months interrupted the downward trend started in July 2018 (3.3%). See the complete publication and more information in the support material.

18 of 26 sectors surveyed drop in May

In the retreat of 0.2% of the industrial activity between April and May 2019, 18 out of the 26 sectors surveyed registered negative rates, highlighted by the decline of 2.4% in motor vehicles, trailers and bodies, which offset part of the advance of 6.4% in April. Other relevant negative contributions came from beverages (-3.5%), leather, traveling articles and footwear (-7.1%), other chemicals (-2.0%), fabricated metal products (-2.3%), non-metallic mineral products (-2.1%) and miscellaneous manufacturing (-5.8%), all of them reversing the positive behavior of the previous month: 3.5%, 5.8%, 4.5%, 1.4%, 0.5% and 3.6%, respectively.

Industrial Output Indicators by Major Economic Category
Brazil - May 2019

Among the eight sectors that rose, the most important performance was recorded by the mining and quarrying industries, which advanced 9.2% and offset part of the cumulative retreat of 25.6% in the first four months of 2019. The positive impact of the sector of coke, petroleum products and biofuels (3.2%) also stood out, interrupting two consecutive months of drop and accruing a loss of 4.9%.

Among the major economic categories, semi and non-durable consumer goods (-1.6%) and durable consumer goods (-1.4%) posted negative rates, both of them offsetting part of the advance of the previous month: 2.8% and 3.3%, respectively. On the other hand, the sectors of intermediate goods (1.3%) and capital goods (0.5%) reported positive figures, the former interrupting four consecutive months of drop, when it accrued a retreat of 4.4%; and the latter completing four consecutive months of expansion and accruing a gain of 10.0% in this period.

Quarterly moving average falls 0.4%

Still in the seasonally-adjusted series, the quarterly moving average fell 0.4% in the quarter ended in May and maintained the upward trend started in August 2018. Having retreated 0.7%, intermediate goods registered the fourth drop in a row, accruing a reduction of 3.3%.

Conversely, the sectors producing capital goods (1.4%), durable consumer goods (0.3%) and semi and non-durable consumer goods (0.1%) advanced, the first rising for the third consecutive month and recording an expansion of 5.8% in this period; the second posting the fourth consecutive month of growth and accruing a gain of 4.8%; and the last one maintaining the predominantly upward trend started in January 2019.

Industrial output grows 7.1% in relation to May 2018

Compared with May 2018, the industrial sector grew 7.1%, with positive figures in the four major economic categories, 21 out of the 26 sectors, 66 out of the 79 groups and 68.0% of the 805 products surveyed. It is worth mentioning that May 2019 (22 days) had one more business day than the same month in the prior year (21).

Among the activities, motor vehicles, trailers and bodies (37.1%) and food products (16.2%) exerted the biggest positive influences on the industry average. Other relevant positive contributions came from beverages (23.9%), machinery and equipment (14.5%), non-metallic mineral products (16.3%), pulp, paper and paper products (14.5%), fabricated metal products (14.0%), electrical machinery and apparatus (16.3%), basic metals (6.1%), other chemicals (6.1%), manufacture of wearing apparel and accessories (14.2%), rubber and plastic products (7.8%) and furniture (18.6%).

Among the five sectors that reduced the production, the major impact came from the sector of mining and quarrying industries (-18.2%), pressed by the reduced manufacture of iron ores, reflecting, to a greater extent, the effects of the collapse of a mine waste dam in the region of Brumadinho (MG) in January 2019. It should be highlighted that the negative contributions in the sectors of coke, petroleum products and biofuels (-3.3%), other transportation equipment (-11.7%) and maintenance, repair and installation of machinery and equipment (-8.5%).

Still comparing with May 2018, durable consumer goods (28.0%) and capital goods (22.2%) registered the steepest expansions among the major economic categories. The segments of semi and non-durable consumer goods (11.4%) and of intermediate goods (2.3%) also rose, the former advancing above the national average (7.1%) and the latter recording the most moderate growth among the economic categories.

Having increased 28.0%, the segment of durable consumer goods posted the second consecutive positive rate and the highest one since April 2018 (35.9%). This month, the sector was leveraged by the growth in the manufacture of cars (39.9%). It is also worth to mention the expansions in white goods (37.5%) and brown goods (3.3%), other household appliances (43.9%), furniture (11.8%) and motorcycles (2.8%).

In May 2019, the sector producing capital goods rose 22.2%, thus reversing two consecutive months of dropping production: March (-11.0%) and April (-0.2%). The result of this month was the sharpest one since April 2018 (23.9%) and influenced by the advance in the group of capital goods for transportation equipment (32.1%). The other positive rates came from capital goods for industrial use (9.3%), for construction (32.5%), for mixed use (11.5%), for agriculture (10.1%) and for electricity (8.2%).

Having risen 11.4% in May 2019, the segment of semi and non-durable consumer goods interrupted two consecutive months of dropping production: March (-5.3%) and April (-0.8%). The result of this month was the steepest one since March 2010 (11.7%) and explained by the expansion in the group of food and beverages for domestic consumption (21.0%). It is also worth mentioning the positive figures of the groups of non-durable (7.1%) and semi-durable (9.3%). On the other hand, the sub-sector of fuels (-3.7%) posted the only negative rate in this category, pressed by the reduced production of motor gasoline.

Conversely, the production of intermediate goods increased 2.3%, thus interrupting eight consecutive months of negative rates. This result was mainly explained by the advances in the products associated with the activities of motor vehicles, trailers and bodies (21.6%), food products (12.7%), non-metallic mineral products (16.6%), pulp, paper and paper products (14.3%), fabricated metal products (11.8%), other chemicals (6.1%), basic metals (6.1%), rubber and plastic products (8.6%), machinery and equipment (9.2%) and textiles (6.2%), whereas the negative pressures were registered by mining and quarrying industries (-18.2%) and coke, petroleum products and biofuels (-3.0%). Still in this economic category, it is also worth mentioning the positive figures in the groups of typical inputs for civil construction (14.5%) and packaging (20.3%), both of them recording the highest advances since the beginning of the time series.

Industry accrues -0.7% in 2019

In the cumulative index between January and May 2019 over the same period in the previous year, the industrial sector dropped 0.7%, with negative figures in one out of the four major economic categories, 10 out of the 26 sectors, 41 out of the 79 groups and 48.6% of the 805 products surveyed.

Among the activities, the mining and quarrying industries (-13.2%) exerted the biggest negative influence, pressed by items iron ores and crude petroleum oil. It is also worth highlighting the negative contributions from computer equipment, electronic and optical products (-8.0%), pharmo-chemicals and pharmaceuticals (-5.8%), maintenance, repair and installation of machinery and equipment (-9.6%), other transportation equipment (-11.2%), printing and reproduction of recorded media (-12.4%) and wood products (-5.3%).

Among the 16 activities that increased the production, the major influence came from motor vehicles, trailers and bodies (6.5%), leveraged by the increased manufacture of items cars, trailers and semi-trailers, car pieces and trucks. Other relevant positive contributions were beverages (8.1%), food products (1.7%), fabricated metal products (7.0%), non-metallic mineral products (4.5%), machinery and equipment (2.1%), other chemicals (1.1%) and electrical machinery and apparatus (2.4%).

Among the major economic categories, the profile of the results of the first five months of 2019 pointed out a lower dynamism for intermediate goods (-2.0%), pressed by the reduction in the mining and quarrying industries (-13.2%), reflecting the effects of the collapse of a mine waste dam in the region of Brumadinho (MG). Conversely, the sectors producing durable consumer goods (3.3%), capital goods (1.9%) and semi and non-durable consumer goods (1.2%) registered positive rates in the cumulative index in the year.