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Regional industry

Industrial output advances in nine of the 15 places surveyed in March

Section: Economic Statistics | Umberlândia Cabral

May 10, 2022 09h00 AM | Last Updated: May 12, 2022 02h32 AM

The segment of motor vehicles was the most influential to the advance of industrial production in the state of São Paulo - Photo: Gilson Abreu/AEN-PR

The industrial output increased in nine of 15 places surveyed by the Monthly Survey of Industry (Regional PIM) in March, when the national index increased 0.3%. São Paulo (8.4%) and Ceará (3.8%) stood out, with the biggest increases in the month. Mato Grosso (2.8%), Minas Gerais (2.4%), Rio de Janeiro (2.1%), Northeast Region (1.8%), Paraná (0.6%), Amazonas (0.3 %) and Bahia (0.1%) completed the group of places with positive results. The data were released today (10) by the IBGE.

“National production increased little in March,because of factors such as the low wage bill, high inflation and the more expensive raw material, which do not allow the increase in pace. The ,ain positive contribution was that of São Paulo, with an impact, mainly on, motor vehicles, machinery and equipment and other chemicals. This is the highest result since July 2020 (10.5%), when industrial production in the state started to make up for the losses of the most restrictive months during the pandemic”,Bernardo Almeida, analyst of the survey, explains.

That is the second month in a row with increase in São Paulo, with a cumulative increase of 9.1% in the period. “But, even so, production in the state is 17.4% below that of its highest rank, which was reached in March 2011,” the researcher says.

March is also the second month of increase of industrial output in Ceará (3.8%), which had a cumulative 10.0% in the period. “In absolute terms, that is the highest rate. And that is due to the segments of leather articles, travel items and footwear, and beverages.” 

The second main contribution to the advance of national production came from Minas Gerais (2.4%), which was affected by the segments of basic metals, motor vehicles and machinery and equipment. Also with increases for the second consecutive month, the state has a cumulative increase of 11.1%. In Rio de Janeiro (2.1%), third major influence, the most representative sectors on the increase of production were mining and quarrying industry and motor vehicles. “This increase made up almost entirely for the cumulative loss of 2.2% in January and February,” Mr. Almeida says.

From February to March, Santa Catarina (-3.8%) was the area with the most significant increase, having interrupted two months of increase in production, with a cumulative advance of 3.6%. “With the decrease in March, the state lows what had been gotten cumulative in this period. This loss is related to retraction in the apparel sector, which is very relevant to the industry of Santa Catarina, and also the sector of machinery and equipment,” says the analyst.

Industrial production in Pará fell 3.3% and eliminated part of the advance of 23.2% registered in February. “The decrease of production in Pará is related to the mining and quarrying sectors and basic metals and takes place because of the movement of these segments in the beginning of the year. In January, there was a very significant decrease due to rainfall in the state, which had an impact on production and on sales of iron ore,” Mr. Almeida says. Another state where industry dropped was Espírito Santo (-3.0%), which intensified the decrease of the previous year (-0.7%).

Production of nine states falls in terms of cumulative index in the year

In the cumulative result for the year, there was a decrease in nine of the 15 areas surveyed, especially Ceará (-12.8%) and Pará (-12.2%). In the case of Ceará, the pressure from industry was mainly exerted by the drop in sectors of leather articles, manufacture of apparel and accessories and electrical machinery and apparatuses. Industrial production in Pará was affected by the decrease in mining and quarrying industry and basic metals. Against March last year, national industry recorded a decrease of 2.1%, with a decrease in seven of the 15 areas surveyed. Santa Catarina (-9.8%), Pará (-7.2%) and Amazonas (-4.1%) were the areas with the biggest decrease.

The decrease in Santa Catarina resulted, mainly, from the negative performance of the following sectors: machinery and equipment; electrical machinery and apparatuses and textiles. The drop of industrial production in Pará was affected by decreases in mining and quarrying industry and basic metals, whereas Amazonas was related to the drops in computer equipment, electronic and optical products and machinery and equipment.

More about the survey

PIM Regional 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, each one accounting for at least 1% of the national value of manufacturing, and also for 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 the Northeast Region.

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