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Regional indstry

Industrial production advances in eight of the 15 places surveyed in April

Section: Economic Statistics | Carlos Alberto Guimarães

June 09, 2022 09h00 AM | Last Updated: June 16, 2022 12h30 PM

The sector petroleum derivatives and biofuels was largely responsible for the advance of the Rio de Janeiro industry - Photo: André Motta de Souza/Petrobras

Industrial production increased in eight of the 15 places investigated by the Monthly Industrial Survey (PIM Regional) in April, when the national index grew 0.1%. The highlights of the month were Rio de Janeiro (5.9%), Santa Catarina (3.3%) and Bahia (3.0%), with the largest expansions in production. Pernambuco (2.0%), Pará (1.9%), Northeast Region (1.5%) and Rio Grande do Sul (0.5%) also recorded more intense advances than the national average, with the state of Amazonas (0.1%) completing the set of places with positive indices in April 2022. The data were released today (9) by the IBGE.

“This timid growth in April is due to factors such as high inflation, the low wagebil, which reduces family consumption, increase in raw materials and shortage of supplies. All these factors directly affect the production chain, reducing the pace of industrial production”, explains the survey analyst, Bernardo Almeida.

The main positive influence came from Rio de Janeiro, with growth of 5.9%, the second consecutive positive rate for the industry of Rio de Janeiro. The coke, petroleum products and biofuels sector was largely responsible for this advance, with the basic metal sector contributing secondarily. “It was the most intense rate for Rio since July 2020, when the Rio de Janeiro industry reached 8.0% growth”, recalls Mr. Almeida.

In second place, also in absolute terms and in terms of influence on the index, comes Santa Catarina, with an increase of 3.3%, largely influenced by the wearing apparel industry. With this result, the state eliminated part of its fall from the previous month, which was 3.5%.
The 2.8% drop in São Paulo was the main negative influence on the national index. The state concentrates approximately 34% of the national industrial production. “The low performance of the motor vehicle sector and that of machinery and equipment had the greatest weight in this result”, comments the technician.

In April, five of the 15 locations surveyed had rates above the pre-Covid-19 pandemic level, recorded in February 2020. They were: Minas Gerais and Rio de Janeiro (both with 5.8%), Mato Grosso ( 5.0%), Rio Grande do Sul (3.0%) and Santa Catarina (2.9%).

Production in 7 states declines compared to April 2021

In comparison with April 2021, the industrial sector showed a decrease of 0.5% in April 2022, with negative rates in seven of the 15 places surveyed. It is worth mentioning that April 2022 (19 days) had one less working day than the same month of the previous year (20). In this month, Espírito Santo (-7.3%), Paraná (-6.6%) and Santa Catarina (-5.6%) had the most intense reductions.

In the cumulative index of 12 months, the national industry had a reduction of 0.3%, with seven of the 15 places surveyed registering negative rates in April 2022. Amazonas (from 6.5% to 1.5%), Paraná (from 5, 8% to 2.1%), Santa Catarina (from 3.5% to 0.1%), Rio Grande do Sul (from 5.2% to 2.0%), Ceará (from -0.9% to -3.7%), Espírito Santo (from 6.4% to 3.8%), São Paulo (from 1.6% to -0.7%) and Minas Gerais (from 7.0% to 4.8 %) showed the main losses between March and April 2022, while Bahia (from -8.8% to -6.9%) and Mato Grosso (from 7.1% to 8.4%) marked the largest gains among the two periods.

In the cumulative index for the year, there was a reduction in production in 11 of the 15 areas surveyed, especially Pará (-10.2%), Ceará (-9.0%) and Santa Catarina (-8.1%). Pernambuco (-4.3%), São Paulo (-4.0%) and Paraná (-3.6%) registered negative rates sharper than the national average (-3.4%), while the Northeast Region (- 2.1%), Minas Gerais (-2.1%), Rio de Grande do Sul (-1.5%), Espírito Santo (-0.9%) and Goiás (-0.7%) completed the set of places with decline in production in the cumulative index in the year.

More about the survey

Since the 1970s, PIM Regional has produced short-term indicators relating to the behavior of the real product of mining and quarrying and manufacturing industries. Monthly, it brings indices for 14 Federation Units whose participation is at least 1% in the total value of the national industrial manufacture and also for the Northeast as a whole, covering, thus: 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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