Industrial production

Industry records increase of 1.2% in November, the seventh in a row

Section: Economic Statistics | Caio Belandi

January 08, 2021 09h00 AM | Last Updated: January 13, 2021 12h50 AM

After recording output decrease during the social distancing period, car manufacture surpasses pre-pandemic figures - Photo: Rodrigo Felix Leal/AEN-PR

For the seventh consecutive month, national industry recorded increase from the previous month, with an increase of 1.2% in November against October. Considering the increases in May (8.7%), June (9.6%), July (8.6%), August (3.4%), September (2.8%) and October (1.1%), the sector has a cumulative increase of 40.7%, which eliminates the decrease of 27.1% between March and April, months when social isolation was more strict and caused industry to reach the lowest level in the series. As a result, the sector is 2.6% above the pre-pandemic level.

Data comes from the Monthly Survey of Industry (PIM), released today (8) by the IBGE, which also shows that, against November 2019, industry advanced 2.8%. From January to November 2020, the sector had a cumulative decrease of 5.5%. In terms of the cumulative index in 12 months, there was a decrease of 5.2%. Despite the recent positive performance, industrial production is still 13.9% below the record level, of May 2011.

All the major categories recorded increase against the October figure, with a highlight to Capital goods (7.4%) and Durable consumer goods (6.2%), which had biggest positive increases. That is the seventh month with increase in a row for both, a cumulative increase of 129.7% in the former and 550.7% in the latter. Both categories are above pre-pandemic levels: 12.2% and 2.7%, respectively.

Also against October, Semi and non-durable consumer goods (1.5%) and Intermediate goods (0.1%) also increased in November, reversing decreases of 0.1% and 0.4%, respectively, in the previous month.

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According to the survey manager, André Macedo, the November result shows the continuation of the previous months situation. “The advance is almost the same as in the previous month and makes the sector keep the hike in relation to the pre-pandemic level. And there was a predominance of growth, that is, all the categories and most activities had an increase,” he explains.

Vehicles sector grows for the seventh consecutive month and recovers pre-pandemic level

The sector of motor vehicles, trailers and bodies remains as the biggest influence of national industry. With an increase of 11.1% in November against October, the activity, after drops in the critical months of the pandemic, had a cumulative expansion of 1,203.2% in seven consecutive months, surpassing by 0.7% the February level.

The magnitude of growth and the importance of the sector to industry is also reflected in other sectors, since the vehicle production influences activities such as basic metals, stimulating the production of steel, and other chemical products, a field that includes paints, for example. Both had increases in November, of 1.6% and 5.6%, respectively. “It is the trend in this period of production resumption after strict months of isolation”, says Macedo about growth of the vehicle sector.

Other activities with relevant positive contributions to the November results were Manufacture of wearing apparel and accessories (11.3%), Machinery and equipment (4.1%), Printing and reproduction of recorded media (42.9%), Leather, travel articles and footwear (7.6%), Beverages (3.1%), Fabricated metal products (3.0%) and Other transportation equipment (12.8%).

Among the nine activities that fell, the main negative impacts were: Food products (-3.1%), which accumulates a reduction of 5.9% in two consecutive months of drop, having eliminated the expansion of 4.0% registered between July and September; Mining and quarrying (-2.4%), with the third consecutive month of drop in production and with a cumulative loss of 10.4%; and Pharmaceuticals, which decreased 9.8%, interrupting two consecutive months of positive results.

In comparison with November 2019, the result was positive in three categories

In the comparison between November 2020 and November 2019, the industrial sector had an increase of 2.8%, with positive results in three of the four major economic categories, 16 of the 26 sectors, 57 of the 79 groups and 63.0% of the 805 products surveyed.

Among the activities, highlights were Machinery and equipment, with an increase of 15.9%; Coke, petroleum products and biofuels, with an increase of 4.9%; Other chemical products, which recorded a positive rate of 8.4%; Beverages, which grew 11.2%; and Fabricated metal products, with expansion of 13.6%.

Considering major economic categories, Capital goods (12.8%) recorded, in November 2020, the biggest increase. The segments of Intermediate goods (3.6%) and of Durable consumer goods (2.7%) also showed expansion in production, while the sector of Semi and non-durable consumer goods (-0.9%) registered the only negative rate in the month.