São Paulo leads decrease of industrial output in August

Section: Economic Statistics | Rodrigo Paradella | Design: Helena Pontes

October 09, 2018 09h00 AM | Last Updated: October 16, 2018 02h44 PM

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The decrease of 0.9% in the industrial output in São Paulo was the main influence towards the decrease of 0.3% in the sector between July and August this year, according to data from the National Survey of Industry – Regional Production (Regional PIM-PF), released today by the IBGE. Against August 2017, however, there was increase of 0.7%.

“São Paulo accounted for the main negative contribution in August due to the scenario of political instability, which led to more careful attitude and expectations. That has led to fewer decisions taken and retraction in investments. São Paulo is our biggest industrial plant and had its second negative rate in a row”, says Bernardo Almeida, analyst in charge of the survey. 

“Amazonas was the second most influential state in terms of national decrease. That was mainly due to a decrease of output of petroleum products”, added the analyst in relation to the decrease of 5.3% in the output from Amazonas. Versus August 2017, the decrease was even bigger: 6.7%.

The Northeast Region, on the other hand, recorded an increase of 1.5% in August and registered widespread increase in the three states taking part in the survey: Bahia (2.7%), Pernambuco (2.6%) and Ceará (1.5%).  Against 2017, that Region increased by 3.6%.

“The three states surveyed in the Northeast Region managed to keep positions above the national change, from July to August, each one for a different reason. Bahia, because of motor vehicles, trailers and bodies. Pernambuco, due to the influence of food products. Ceará, due to the positive contribution of leather articles”, Bernardo explains.

In August, nine of the fifteen areas surveyed recorded positive changes in terms of industry output: Mato Grosso (3.0%), Bahia (2.7%), Pernambuco (2.6%), Ceará (1.5%), Northeast Region (1.5%), Rio Grande do Sul (0.8%), Paraná (0.7%), Minas Gerais (0.5%) and Goiás (0.2%). On the other hand, there were decreases in Rio de Janeiro (-0.3%), Santa Catarina (-0.7%), São Paulo (-0.9%), Espírito Santo (-0.9%), Pará (-1.1%) and Amazonas (-5.3%).

In terms of the cumulative index in 2018, the positive highlights were Amazonas (10.9%) and Pará (9.2%), whereas Ceará (-0.1%), Minas Gerais (-1.3%), Espírito Santo (-3.4%) and Goiás (-3.6%) accounted for the only decreases in the period.