In August 2020, industrial production grew 3.2% compared to July, in the seasonally adjusted series. Even with four consecutive increases, the indicator has not yet completely eliminated the 27.0% loss accumulated between March and April, at the beginning of the Covid-19 pandemic, when industrial production fell to the lowest level in the series.

In relation to August 2019 (non-adjusted series), the industry decreased 2.7%, the tenth negative result in a row in this comparison. As a result, the sector accumulates a loss of 8.6% in the year and 5.7% in twelve months. The full publication of the Monthly Survey of Industry (PIM) is on the right.

The domestic industrial activities grew for four consecutive months, but they have not yet offset the 27.0% drop accumulated in the period of March-April 2020, the beginning of the Covid 19 pandemic. The August result has a positive behavior quite widespread, explained by the increase in the production pace, after the strict measures, including production interruption, in several industrial plants due to the pandemic.

The 3.2% increase in industrial activity, from July to August 2020, reached all major economic categories and 16 of the 26 sectors surveyed. 

Production of motor vehicles increases 19.2% compared to July

Among the activities, the most relevant positive influence was that of motor vehicles, trailers and bodies, which increased 19.2% in August 2020, driven, to a large extent, by the gradual reopening of production after the interruption due to the pandemic. The sector accumulated an expansion of 901.6% in four consecutive months of growth in production, but is still 22.4% below the level of last February.

Other relevant positive contributions to the total result came from coke, petroleum products and biofuels (3.9%), mining and quarrying industries (2.6%), rubber and plastic products (5.8%), leather, travel goods and footwear (14.9%), non-metallic mineral products (4.9%), food products (1.0%), wearing apparel and accessories (11.5%), bsic metals (3.2%), textiles (9.1%) and metal products (3.1%).

On the other hand, among the ten branches that showed a reduction in production, pharmaceuticals (-9.7%), toiletries, soaps, cleaning and personal hygiene products (-9.7%), other chemicals (-1.8%) and beverages (-2.5%) pointed out the main negative impacts in that month.

Among the major economic categories, in relation to July 2020, durable consumer goods, with a 18.5% growth, showed the sharpest positive rate in August 2020 and pointed the fourth consecutive month of expansion in production, accumulating in this period progress of 524.2%. But the segment is still 3.0% below last February's level.

The sectors producing capital goods (2.4%), intermediate goods (2.3%) and semi- and non-durable consumer goods (0.6%) also registered growth this month, but with all advancing below the industry average (3.2%). All these segments showed expansion for the fourth consecutive month and accumulated gains of 76.4%, 25.2% and 25.0%, respectively.

Moving average advances 6.9% in the quarter ended in August

In the seasonally adjusted series, the quarterly moving average for the total industry increased 6.9% in the quarter ended in August after advancing 8.9% in July, when it interrupted the predominantly downward trend started in November 2019.

Among the major economic categories, durable consumer goods (37.1%) marked the sharpest advance in August, after growing 61.6% in July, when it interrupted the negative behavior present since December 2019.

The sectors of capital goods (10.1%), intermediate goods (5.8%) and semi- and non-durable consumer goods (4.5%) also showed positive rates in August 2020. The first two advanced for the second consecutive month and accumulated, in that period, gains of 31.1% and 13.3%, respectively; and the last one kept the upward trend that started in May 2020. 

Industry fell 2.7% compared to August 2019

In comparison with the same month of 2019, the industrial sector fell 2.7% in August 2020, with negative results in three of the four major economic categories, 12 of the 26 branches, 45 of the 79 groups and 53.3% of the 805 products surveyed. August 2020 (21 days) had one business day less than the same month of the previous year (22).

Among the activities, that of Motor vehicles, trailers and bodies (-25.7%) had the greatest negative influence on the formation of the industry average, influenced by the items cars, tractor trucks for trailers and semi-trailers, trucks and auto parts.

Other important negative contributions were in the wearing apparel and accessories (-23.8%), printing and reproduction of recorded media (-57.9%), leather, travel goods and footwear (-23, 6%), basic metals (-7.9%), other transportation equipment (-29.9%), machinery and equipment (-7.0%), maintenance, repair and installation of machinery and equipment ( -21.3%), mining and quarrying industries (-2.0%) and pharmaceuticals (-5.9%).

On the other hand, in comparison with August 2019, among the fourteen activities on the rise, the main influences in the total of the industry came from food products (5.7%), coke, petroleum products and biofuels (6.0%) and beverages (11.7%).

Other important positive impacts were recorded by the sectors of metal products (5.9%), computer equipment, electronic and optical products (6.8%), rubber and plastic products (4.1%), furniture (11.3%) and non-metallic mineral products (3.5%).

Among the major economic categories, compared to August 2019, capital goods (-16.9%) marked, in August 2020, the sharpest decline among the major economic categories. The segments of durable consumer goods (-7.7%) and semi- and non-durable consumer goods (-7.0%) also showed a reduction in production, while the sector producing intermediate goods (1.9%) recorded the only positive rate that month.

The capital goods segment decreased 16.9% in August 2020 compared to August 2019 in the seventh negative result in a row in this type of comparison. The segment was influenced by the drop in the group of capital goods for transportation equipment (-31.3%).

The other negative rates were for capital goods for industrial purposes (-6.3%), for electric energy (-17.4%), for construction (-14.6%) and for mixed use (-3.4%). On the other hand, the only positive impact was registered by the group of capital goods for agricultural purposes (9.4%).

The durable consumer goods segment, which fell 7.7% in August 2020, marked the seventh consecutive negative rate in this comparison. The sector was affected by the reduction in the manufacture of cars (-21.3%).

It is also worth mentioning the negative result from the lower production of motorcycles (-13.2%). On the other hand, the positive impacts came from household appliances in “white goods” (22.6%) and “brown goods” (16.9%) and from furniture groups (16.5%) and other household appliances (7.9%).

The segment of semi- and non-durable consumer goods decreased 7.0% in August 2020, the eighth consecutive negative rate in this type of comparison. The performance was mainly attributable to the falls registered in the groups of semi-durable goods (-16.7%), fuel (-13.1%) and non-durable goods (-9.3%). On the other hand, the group of food and beverages preparations for domestic consumption (0.3%) showed the only positive rate in this category.

The intermediate goods sector grew 1.9% in August 2020, after advancing 1.8% in the previous month, when it interrupted four consecutive months of decline. The result is due to the activities of coke, petroleum products and biofuels (17.0%), food products (15.1%), rubber and plastic products (3.8%), other chemical products (2.1%), non-metallic mineral products (3.1%), pulp, paper and paper products (2.0%), metal products (0.8%) and textiles (0.8%), while negative pressures were registered by motor vehicles, trailers and bodies (-27.1%), basic metals (-7.9%), mining and quarrying (-2.0%) and machinery and equipment (-4.7%). 

Also of note are the groups of typical inputs for civil construction (2.7%), the second consecutive month of growth after five consecutive months of decline; and the packaging segment (-1.9%), in the fifth consecutive negative rate.

The industrial sector fell 8.9% in the second quarter of 2020, its sharpest drop since the first quarter of 2016 (-10.2%), remaining negative since the last quarter of 2018 (-1.6%), always against same period of the previous year.

The acceleration in the loss of industry from the first (-8.3%) to the second four-month period of 2020 (-8.9%) is due to the reduction of pace in two of the four major economic categories: capital goods (from - 16.0% to -23.9%) and durable consumer goods (from -27.8% to -32.2%).

Intermediate goods (from -4.5% to -4.0%) and semi and non-durable consumer goods (from -9.1% to -9.0%) remained negative, although reducing the intensity of loss.

All major economic categories accumulate decline in the year

The cumulative index in the year, compared to the same period of 2019, decreased 8.6%, with negative results in all major economic categories, 20 of the 26 branches, 64 of the 79 groups and 71.8% of the 805 products surveyed.

Among the activities, motor vehicles, trailers and bodies (-39.9%) exerted the most intense negative influence, driven by the items cars, trucks, tractor trucks for trailers and semi-trailers, auto parts and vehicles for transporting goods.

It is also worth mentioning the negative contributions of metallurgy (-14.2%), clothing and accessories (-34.7%), machinery and equipment (-14.5%), leather, travel goods and footwear ( -32.2%), other transport equipment (-32.9%), non-metallic mineral products (-9.6%), rubber and plastic products (-9.0%), textile products (-17.1%), miscellaneous products (-21.9%), mining and quarrying industries (-2.1%), printing and reproduction of recorded media (-37.7%) and metal products (-7.3% ).

On the other hand, among the six activities that showed expansion in production, the main influences on the total of the industry were registered by food products (5.0%) and coke, petroleum products and biofuels (4.1%).

Among the major economic categories, the 2020 results showed decreases in durable consumer goods (-30.1%) and capital goods (-20.2%), mostly driven by the reduction in car manufacturing (- 45.6%), in the first group; and capital goods for transportation equipment (-34.9%) and for industrial purposes (-14.5%), in the second.

The sectors of semi- and non-durable consumer goods (-9.0%) and intermediate goods (-4.2%) also accumulated negative rates in the year, with the first one indicating a sharper decline than the national average (-8.6%); and the second with the least intense loss among the major economic categories.