Industry in São Paulo faces decline of 3.3% and reduced pace of increase in January
March 09, 2018 09h00 AM | Last Updated: March 09, 2018 12h23 PM
The industrial output of the São Paulo state fell by 3.3% in January, against December. That is the biggest decrease since August 2016 and the main reason accounting for the negative result of national industry (-2.4%). Activities such as motor vehicles, petroleum products, basic metals and rubber sectors were responsible for the main contributions to that performanc, according to the Monthly Survey of Industry - Regional Production, released today by the IBGE.
Besides facing a more significant decrease in comparison with the national result, São Paulo accounts for 34% of the national output of industry. According to André Macedo, manager of the survey, another aspect that leads to such a result is the higher basis for comparison, once São Paulo has recently recorded advance for two months in a row: “although it is not the strongest state in tersm of decrease, it is responsible for the biggest negative contribution to the overall”.
Other areas that recorded negative changes were: Paraná (-4.5%), Rio Grande do Sul (-3.5%), Ceará (-2.2%), Rio de Janeiro (-2.1%), Northeast Region (-1.1), Espírito Santo (-0.9%) and Santa Catarina (-0.1%).
Despite the decrease in January, recovery is expected
In comparison wirh January 2017, the industry of São Paulo recorded increase of 7.5%, in a sequence of nine months of increase starting in May 2016, smiliarly to what was observed in the national industry. Once more, the car sector represented a big contribution to the result. Considering the cumulative index in 12 months, the state recorded an increase of 3.9%.
Given these results, the researcher says that "the analysis remains as one of recovery for the state and for the country, in spite of the decrease in January versus December and of some decline in pace”.
