Regional industry

Industrial production grows in 12 of the 15 areas surveyed in July

Section: Economic Statistics | Caio Belandi

September 09, 2020 09h00 AM | Last Updated: September 09, 2020 12h28 PM

#PraCegoVer A foto mostra o interior de uma fábrica de biscoitos
Food sector had an influenc on the positive rate in São Paulo - Photo: São Paulo State Government

Industrial production increased in 12 of the 15 areas analyzed by the Monthly Survey of Industry – Regional edition, from June to July. The result, released today (9) by the IBGE, shows the expanded resumption of industrial activity, after interruptions due to the Covid-19 pandemic. The national output of industry increased 8% in July, for the third straight month.  

The main increases took place in Ceará (34.5%) and in Espírito Santo (28.3%), but São Paulo (8.6%), which holds the main industrial plant in the country, still accounts for the major contribution. That increase resulted from the good performance of the food products and the motor vehicles sectors: “These sectors have a major influence on the state industry. Machinery and equipment also recorded a relevant increase,”, Bernardo Almeida, manager of the survey, explains.

That is the third straight month of increase in São Paulo, with a cumulative 32%, “But we have not yet reached the pre-pandemic level, being still below the index of February (6%)," Mr. Almeida highlights.  

The positive result of Ceará, the ninth most important location this month, was, according to the analyst, mainly due to the increase of rates in the sector of leather, travel articles and wearing apparel. “That is the third positive rate in a row for the state, with a cumulative 92.5%, but still below the 1% of the pre-pandemic level.” Espírito Santo had a cumulative increase of  28.6% in two straight months of output increase.

The other areas with increases above the national average were the Northeast (17.5%), Amazonas (14.6%), Bahia (11.1%), Santa Catarina (10.1%), Pernambuco (9.5%) and Minas Gerais (9.2%). Rio de Janeiro (7.6%), Rio Grande do Sul (7.0%) and Pará (2.1%) complete the group of areas with increase in the month.

On the other hand, three states recorded decreases. Paraná (-0.3%) and Goiás (-0.3%) recorded negative changes, but Mato Grosso (-4.2%) had  the most significant decrease in July, a cumulative increase of 8.2%, recorded in two months.

Results were negative in 8 of the 15 areas surveyed against July 2019

In comparison with its performance in July 2019, industrial production in Brazil decreased in 8  of the 15 areas surveyed. Espírito Santo (-13.4%) and Paraná (-9.1%) registered the most significant decreases. Pará (-7.5%), Rio Grande do Sul (-7.5%), Bahia (-5.7%), Santa Catarina (-4.9%), Mato Grosso (-4.4%) and São Paulo (-3.3%) completed the group of areas with decrease in production.

On the other hand, Pernambuco (17.0%) accounted for the main increase. Amazonas (6.0%), Goiás (4.0%), Ceará (2.7%), Minas Gerais (1.5%), Rio de Janeiro (1.0%) and the Northeast Region (0.9%) accounted for the main positive rates.