In the seasonally-adjusted series, the industrial output grew 0.8% in October 2019 against September. This was the third positive rate in a row, accruing a rise of 2.4% in the period. In the seasonally-unadjusted series, the industry advanced 1.0% compared with October 2018, after rising 1.1% in September, when it interrupted three consecutive months of negative figures: June (-5.8%), July (-2.6%) and August (-2.1%).

In the first ten months of 2019, the industrial sector posted a cumulative decrease of 1.1%. Having retreated 1.3% in October 2019, the cumulative index over the last 12 months continued to reduce the pace of the drop started in August 2019 (-1.6%). The data are from the Monthly Industrial Survey - PIM-PF Brazil. See the complete publication and more information in the support material.

14 of 26 sectors surveyed increase in October

In the rise of 0.8% in industry between September and October 2019, 3 out of the 4 major economic categories and 14 out of the 26 sectors surveyed increased their output. Among the activities, the most important positive influences were registered by food products (3.4%) and pharmo-chemicals and pharmaceuticals (11.2%), the former reversing the drop reported in the previous month (-0.3%) and the latter offsetting the cumulative reduction of 9.1% in August and September.

Other relevant positive impacts were recorded in the sectors of electrical machinery and apparatus (4.9%), pulp, paper and paper products (2.4%), printing and reproduction of recorded media (15.3%), machinery and equipment (1.4%), other chemicals (1.1%), non-metallic mineral products (1.8%) and beverages (1.6%).

Among the ten sectors that reduced the output, the most important performances were coke, petroleum products and biofuels (-2.1%), basic metals (-3.2%) and mining and quarrying industries (-1.1%). The first sector stepped up the retreat reported in the previous month (-1.3%); the second one accrued a loss of 7.1% along five consecutive months of decreasing production; and the third sector posted the second negative rate in a row, accruing a loss of 2.9% in this period. It is worth highlighting the retreats registered in wearing apparel and accessories (-3.4%), furniture (-5.6%) and motor vehicles, trailers and bodies (-0.6%).

Among the major economic categories, durable consumer goods (1.3%) and semi and non-durable consumer goods (1.0%) recorded the highest rises in October 2019, both of them reporting the second consecutive month of growth and accruing an expansion of 4.1% and 1.7% in this period, respectively. The segment of intermediate goods (0.3%) also advanced and maintained the positive behavior of August (1.6%) and September (0.2%). On the other hand, the sector of capital goods (-0.3%) posted the only negative rate in October 2019, after also declining in September (-0.4%).

Quarterly moving average advances 0.8%

Still in the seasonally-adjusted series, the quarterly moving average for the whole industry rose 0.8% in the quarter ended in October 2019 against the previous month and thus maintained the upward trend started in July 2019.

Among the major economic categories, durable consumer goods (1.0%) registered the highest positive figure in October 2019, thus stepping up the growth reported in September (0.9%). Intermediate goods (0.7%) and semi and non-durable consumer goods (0.5%) also recorded positive rates, the former continuing the upward trend started in June 2019 and the latter advancing for the second month in a row, accruing an expansion of 1.1% in this period. Conversely, capital goods (-0.2%) posted the only retreat this month and maintained the negative behavior started in July 2019, accruing a reduction of 0.8% in this period.

Industrial output advances 1.0% in relation to October 2018

Compared with the same month last year, the industrial sector grew 1.0% in October 2019, with positive figures in three out of the four major economic categories, 13 out of the 26 sectors, 40 out of the 79 groups and 48.2% of the 805 products surveyed. It is worth mentioning that October 2019 (23 days) had one more business day than the same month in the prior year (22).

Among the activities, food products (12.3%) exerted the biggest positive influence. It is also worth highlighting: coke,petroleum products and biofuels (3.2%), motor vehicles, trailers and bodies (3.5%), electrical machinery and apparatus (6.9%), fabricated metal products (4.9%), beverages (3.6%), pharmo-chemicals and pharmaceuticals (5.0%) and computer equipment, electronic and optical products (4.0%).

Among the 13 activities that reduced the output, the major influences were registered by mining and quarrying industries (-7.3%) and basic metals (-8.0%). Other important negative impacts were: pulp, paper and paper products (-4.1%), wearing apparel and accessories (-4.4%), printing and reproduction of recorded media (-12.8%) and other chemicals (-1.4%).

Durable consumer goods (6.9%) recorded the steepest expansion among the the major economic categories in October 2019. The sector of semi and non-durable consumer goods (3.3%) also posted a more intense advance than the national average (1.0%), whereas the segment of intermediate goods (0.1%) registered a slight positive change. Having fallen 2.9%, the sector producing capital goods recorded the only negative figure this month.

After advancing 8.6% in September, the segment of durable consumer goods rose 6.9%. This month, the sector was particularly leveraged by the expansion in the manufacture of cars (5.2%) and white goods (14.6%). It is also worth mentioning the advances in: brown goods (2.8%), motorcycles (9.4%), furniture (3,0%) and other house appliances (14.8%).

After increasing 1.8% in September, the sector producing semi and non-durable consumer goods advanced 3.3%. The performance this month was explained, to a great extent, by the expansions reported in the groups of fuels (15.4%) and food and beverages for domestic consumption (4.0%). Conversely, the sub-sectors of semi-durable (-1.9%) and non-durable (-0.7%) registered the negative rates in this category.

Having changed 0.1%, intermediate goods recorded the first positive rate since May 2019 (3.2%). The result of this month was mainly explained by the advances in products associated with the activities of: food products (22.5%), motor vehicles, trailers and bodies (8.1%), fabricated metal products (2.4%), machinery and equipment (2.2%) and non-metallic mineral products (1.0%), whereas the negative pressures were on: mining and quarrying industries (-7.3%), basic metals (-8.0%), coke, petroleum products and biofuels (-2.3%), pulp, paper and paper products (-4.7%), other chemicals (-1.3%), rubber and plastic products (-1.9%) and textiles (-0.8%). Still in this economic category, it is also worth mentioning the positive figures of: typical inputs for civil construction (1.5%) and packaging (0.1%), both of them posting the second consecutive month of increasing output: 2.1% and 1.7%, respectively.

After advancing 1.8% in September, the sector of capital goods retreated 2.9%. This month, the segment was influenced, to a great extent, by the reductions in the groups of agricultural capital goods (-19.9%) and transportation equipment (-3.1%). Capital goods for construction (-1.9%) and for electricity (-0.8%) also recorded negative figures this month. Conversely, the positive impacts were registered by the groups of capital goods for industrial use (5.8%) and for mixed use (0.7%).

In 2019, industry accrues drop of 1.1%

In the cumulative index for January-October 2019 against the same period a year ago, the industry declined 1.1%, with negative figures in one out of the four major economic categories, 15 out of the 26 sectors, 40 out of the 79 groups and 53.8% of the 805 products surveyed.

Among the activities, mining and quarrying industries (-9.5%) exerted the biggest negative influence. It is also worth highlighting the negative contributions reported by: pulp, paper and paper products (-3.7%), maintenance, repair and installation of machinery and equipment (-8.8%), other transportation equipment (-9.9%), basic metals (-1.6%), wood products (-5.7%), rubber and plastic products (-1.9%), printing and reproduction of recorded media (-8.6%) and pharmo-chemicals and pharmaceuticals (-2.5%).

Among the ten activities that increased, the major influences were registered by motor vehicles, trailers and bodies (2.8%), food products (1.6%), fabricated metal products (5.4%) and beverages (3.5%).

Among the major economic categories, the sector of intermediate goods (-2.2%) showed less dynamism, mostly pressed by the reduction in mining and quarrying industries (-9.5%). On the other hand, the segment of durable consumer goods (2.2%) posted the sharpest rise, leveraged, to a great extent, by the increased manufacture of white goods (12.5%). Semi and non-durable consumer goods (0.7%) and capital goods (0.4%) also registered positive rates.