Regional industry

Industrial production decreases in 9 of the 15 areas surveyed in April

Section: Economic Statistics | Caio Belandi

June 09, 2021 09h00 AM | Last Updated: June 09, 2021 10h25 PM

Poor performance of petroleum products affects local industries - Photo: Flickr

Industrial production decreased in 9 of the 15 areas surveyed by the Monthly Survey of Industry (PIM Regional), from March to April, with a highlight to Bahia, which recorded a decrease of 12.4%, and to the Northeast region, which fell by 7.8%. These results, released today (9) by the IBGE, show that the poor performance of petroleum products affected local industries. National production fell 1.3% in April from March, as reported by the IBGE last week (2).

A total of five areas are above pre-pandemic levels, of February 2020: Minas Gerais (10.2% above); Santa Catarina (7.2%), Paraná (6.4%), Amazonas (4.4%) and São Paulo (3.4%).

“The result of April is due to the aggravation of the Covid-19 pandemic, with more strict restriction measures resulting in a reduction of work shifts, reaching productivity,” says Bernardo Almeida, manager of the survey.

The area recording the biggest decrease in percentage terms, Bahia saw the performance of industry reflect most significantly figures in the sector of petroleum products. That decrease (12.4%) was biggest for this state since April 2020 (-23.4%), the most severe period of the pandemic, leading to a cumulative -31.8%.

The Northeast Region was also affected by the negative result of petroleum products. Another influential sector was leather, travel articles and footwear. “It is worth mentioning that the calculation in the Northeast encompasses all the states, that is, the performance of Bahia affected it too," says the researcher. That is the fifth negative rate in a row for the Region, with a cumulative decrease of 17.1%.

The state housing the biggest industrial plant in the country, São Paulo also recorded a decrease above the national average, with a decrease of 3.3%. “That is mainly due to the poor performance of the sector of petroleum products, besides pharmaceuticals and other chamicals,” Mr. Almeida explains. Goiás (-3.6%), Pernambuco (-2.4%), Santa Catarina (-2%), Ceará (-1.2%), Mato Grosso (-1.1%) and Minas Gerais (-0.9%) complete the group of areas with negative rates in April. 

In terms of increase, Amazonas was a highlight (1.9% and recorded the second positive rate in a row, with a cumulative increase of 11%. In the state the sector of petroleum products had a goog performance. Rio de Janeiro also recorded an increase (1.5%) and accounted for the mainpositive contribution to the national result, being affected by the mining and quarrying sector, most specifically, petroleum extraction. Espírito Santo (0.9%), Pará (0.3%), Rio Grande do Sul (0.3%) and Paraná (0.2%) also recorded negative results in April 2021.

In relation to April 2020, 12 areas recorded increase

In comparison with April last year, when national increase had reached 3.7%, there were increase in 12 of the 15 areas surveyed in April 2021. Mr. Almeida highlights that the positive results were influenced by the low basis for comparison, since the industrial sector was significantly affected, in April 2020, due to social distancing measures during the COVID-19 pandemic. Both in 2020 and in 2021, April had the same number of working days (20).

Amazonas (132.8%) and Ceará (90.2%) recorded the biggest decreases. Paraná (55.1%), Rio Grande do Sul (53.8%), Santa Catarina (50.5%) and São Paulo (45.5%) also registered rates above the average of industry. Other areas recording increase were Minas Gerais (32.5%), Pernambuco (31.4%), Espírito Santo (26.1%), Northeast Region (20.2%), Rio de Janeiro (10.3%) and Pará (6.0%).

Among the three areas that recorded negative rates, Bahia (-10%) registered the biggest decrease. Goiás (-8.7%) and Mato Grosso (-2%) also recorded decreases in April 2021 from April 2020.

About the survey

PIM Regional phas produced, since the 1970's, short-term indicators relative to the performance of the real product from mining and quarrying and manufacturing industry. It presents, monthly, indexes for 14 Federation Units whose participation is, at least, 1% of the total value of manufacturing of national industry, and also of the Northeast Region as a whole: Amazonas, Pará, Ceará, Pernambuco, Bahia, Minas Gerais, Espírito Santo, Rio de Janeiro, São Paulo, Paraná, Santa Catarina, Rio Grande do Sul, Mato Grosso, Goiás and Northeast Region. See the complete results at Sidra.