Regional industry

Vehicle manufacture smooths drop in São Paulo's industry in July

Section: Economic Statistics | Luiz Bello

September 10, 2019 09h00 AM | Last Updated: September 12, 2019 03h54 PM

#PraCegoVer camilhão cegonha transportando carros
Drop of São Paulo's industry could have been bigger if it were not for the highs in the motor vehicle sector - Photo: Licia Rubinstein/IBGE News Agency

The -0.3% drop in the country's industrial activity in July, compared to June, was reflected in 8 of the 15 places surveyed by the Monthly Survey of Industry - Regional Edition, released today by the IBGE. São Paulo, which represents about 34% of the country's industry, had its third consecutive fall, of 1.4%, accumulating a loss of 3.7% between May and July. The decrease could have been bigger if it were not for the high in the manufacture of motor vehicles.

The deepest slump in industry was in Amazonas (-6.2%) and Pernambuco (-3.9%), meanwhile, the sharpest increase was in Rio de Janeiro (6.8%) and Mato Grosso (5.5%).

Survey analyst Bernardo Monteiro explains that the industry performance in this period is due to different factors. In São Paulo’s industry, there was, according to him, “a dissemination of negative results”, with a highlight to the sectors of petroleum products and manufacture of computer, electronic and optical products.” The slump in São Paulo’s industry wasn’t worse because there was an increase in the vehicle sector”, he says.

In Amazonas,  the manufacture of beverage, which has a significant contribution in local industry activities, edged down 6.2%. “It was the worst decrease in the Amazonian industry since September 2018”, he says.

In Pernambuco, industrial activities retreated 3.9% due to other chemicals, which gather several products, from paint to pesticide.

Regarding the top seven places, the highlight was Rio de Janeiro. The petroleum industries and the refining activities stimulated a growth of 6.8% compared to June. “This growth totally eliminated the losses of 5.8% in Rio de Janeiro’s industry in the previous month”, explains the IBGE analyst.

Keywords: Indústria, Regional, São Paulo, Veículos, Queda.