Industry rises in 14 of 15 places surveyed in June

Section: Economic Statistics | Caio Belandi

August 11, 2020 09h00 AM | Last Updated: August 11, 2020 12h21 PM

Industrial activity increased in June, though the result still does not make up for losses
Marcelo Benedicto/IBGE News Agency

Gradually recovering the production, the Brazilian industry rose in 14 out of the 15 places surveyed by the Regional Monthly Industrial Survey - PIM-Regional in June over May. All the places increased, except Mato Grosso (-0.4%), which recorded the only negative result.

Released today (11) by the IBGE, the survey shows that the growth of the regional industry in May and June does not fully recover the losses in March and April in most places, caused by the suspension of the activities due to the Covid-19 pandemic. "Since May, the industry grows aiming at offsetting the losses. We are still in the pandemic, still isolated, though in the way to return the output to previous levels," reflects Bernardo Almeida, an analyst of the survey.

As the largest industrial park in Brazil, São Paulo remains leveraging the national average (8.9%), rising 10.2% over May. This is the second consecutive positive rate of the São Paulo industry, which registers -14.2% in the cumulative index in the year. "It was still not sufficient to make up for the loss in the more restrictive months of social distancing," stresses Almeida. Compared with June 2019, the rate in São Paulo was -11.8%.

Amazonas recovers and offsets loss in pandemic

In June, Amazonas (65.7%) and Ceará (39.2%) registered the highest rates compared with May, both of them recording the second consecutive positive rate and accruing gains of 95.1% and 42.5% in this period, respectively. The state of the North Region posted the second biggest influence over the June´s rate and offset the cumulative loss during the most restrictive months, when it registered -55.1%. Still comparing with the previous month, the state also recorded the highest rate since the beginning of the time series in January 2002. On the other hand, Amazonas lost 10.4% compared with June 2019.

The Rio Grande do Sul´s industry was another highlight of the survey, as it rose above the national average and registered 12.6% in the comparison with May. It was the second consecutive positive rate for Rio Grande do Sul, accruing 31.6% in May and June. Nevertheless, the cumulative loss between March and April was of 37.1% and the state´s industry still did not offset the losses in the pandemic. The rate was -12.2% compared with June 2019.

In addition to Rio Grande do Sul and São Paulo, Santa Catarina (9.1%) also rose above the national average. The Northeast Region (8.0%), Minas Gerais (5.8%), Paraná (5.2%), Pernambuco (3.5%), Pará (2.8%), Goiás (0.7%), Rio de Janeiro (0.7%), Bahia (0.6%) and Espírito Santo (0.4%) were the other places with positive indexes in June over May.

In contrast, Mato Grosso (-0.4%) recorded the only negative figure. "The drop was influenced by the food sector, very active in the state´s industry. The negative rate came after a growth of 3.6% in May," states Bernardo Almeida.

Result is negative in 12 of 15 places compared with June 2019

When we compare June 2020 with June 2019, the Brazilian industry dropped in 12 out of the 15 places surveyed by PIM, even the "calendar effect" being positive, i.e., June 2020 had two more business days than June 2019. For Almeida, this result shows that, even gradually resuming, the pace of the industrial output in Brazil remains reduced, still influenced by the effects of social distancing.

In this comparison, Espírito Santo (-32.4%) and Ceará (-22.1%) posted the most intense declines. Bahia (-14.4%), the Northeast Region (-13.0%), Santa Catarina (-12.6%), Rio Grande do Sul (-12.2%), São Paulo (-11.8%) and Amazonas (-10.4%) also registered higher losses than the industry average (-9.0%), whereas Pará (-8.0%), Paraná (-6.8%), Minas Gerais (-6.0%) and Rio de Janeiro (-0.4%) were the other places whose production dropped in June 2020 against June 2019. On the other hand, Goiás (5.4%) recorded the most intense advance this month, followed by Pernambuco (2.8%) and Mato Grosso (1.6%).