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Regional industry

Industry shrinks in 9 of the 15 places surveyed in September

Section: Economic Statistics | Marília Loschi

November 10, 2021 09h00 AM | Last Updated: November 11, 2021 12h18 PM

In São Paulo, the 1.0% drop over August was driven by the food sector - Photo: Jonathan Campos/AEN-PR

Industrial production fell in nine of the 15 places investigated by the Monthly Survey of Industry (PIM Regional), from August to September. The main decreases were in Ceará (-4.4%) and Amazonas (-4.0%). Other states with more intense declines than the national rate (-0.4%) were Goiás (-2.3%), Mato Grosso (-2.2%), São Paulo (-1.0%), Pará ( -0.6%) and Santa Catarina (-0.5%). The results of the Regional PIM were released today (November 10) by the IBGE.

Of all the states, the greatest influence came from São Paulo, which accounts for around 34% of the country's industrial production. The 1.0% drop compared to August was pressured by the food sector and, to a lesser extent, by the petroleum derivatives sector. As a result, the state is 23.5% below its highest production level, reached in March 2011, and still 1.4% below the pre-pandemic level.

Mr. Bernardo Almeida, research analyst, explains that the effects of the COVID-19 pandemic have been attenuated since August 2020, with the relaxation of restrictive measures. “As of August of last year, we already have more regularized production. And we started to realize the consequences of the pandemic for industrial production: shortage of inputs, increase in the cost of production, reduction in household consumption due to inflation and unemployment. All of this affects the production chain”, comments Mr. Almeida. "Even with the pandemic slowing down, the consequences persist."

In September, only four areas had industrial production above the pre-pandemic level of February 2020: Santa Catarina (5.2% above), Rio de Janeiro (1.7%), Paraná (1.6%) and, as a highlight, Minas Gerais (10.2% above), the only state that has remained since July last year.

Over September 2020, 11 places decreased

In comparison with September last year, the most intense falls occurred in the Northeast Region (-13.7%), Amazonas (-13.5%), Bahia (-13.3%) and Ceará (-12.3%) . In the case of Bahia, specifically, the losses in the vehicle sector stand out, due to the departure of an important car industry in the state. “The fall in the production of automobiles and auto parts had an impact on the Northeast Region as a whole, explains Bernardo Almeida”.

There were also falls in Mato Grosso (-8.3%), Goiás (-8.2%), Pará (-7.9%), Pernambuco (-5.8%), São Paulo (-5.6%) , Rio Grande do Sul (-4.4%), and Espírito Santo (-0.2%). On the other hand, Rio de Janeiro (5.3%) and Minas Gerais (5.0%) had the greatest advances in September 2021.

More about the survey

PIM Brazil has been producing short-term indicators since the 1970s regarding the behavior of the real product from mining and quarrying and manufacturing industries. It presents, every month, indexes for 14 Federation Units, whose contribution is of at least 1% of the total value of manufacturing at national level and also for the Northeast Region as a whol:. 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 the Northeast Region.

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