Industrial production retreats in 10 of the 15 places surveyed in June
August 09, 2022 09h00 AM | Last Updated: August 11, 2022 03h59 PM
Industrial production dropped in 10 out of 15 places surveyed by the Monthly Survey of Industry (Regional PIM) between May and June, when the national index changed 0.4%, after 4 months of positive rates.
The greatest falls took place in Mato Grosso (-2.8%), Rio de Janeiro (-2.4%) and Espírito Santo (-2.3%). Amazonas (-1.6%), Ceará (-1.4%), Northeast Region (-0.6%) and Rio Grande do Sul (-0.5%) also recorded decreases sharper than the national average (-0.4%).
Pará (9.8%) had the highest increase this month and offset part of the 13.3% drop seen in May. Bahia (2.4%), Pernambuco (1.0%), São Paulo (0.8%) and Santa Catarina (0.2%) accounted for the other positive rates. The data were released today (Aug 9) by the IBGE.
The main negative influence came from Rio de Janeiro (-2.4%) with the second consecutive negative rate, a period in which the cumulative loss was 6.5%. “The behavior in Rio de Janeiro reflects the low performance of the sector of petroleum derivatives, very important in Rio’s industry, and also of the pharmaceutical industry. Both sectors adopt a strategy of production and equalization of supply and demand”, explains the survey analyst, Bernardo Almeida.
The second biggest influence on the national result come from the industry in Amazonas (-1.6%), after four months of positive results, when it accumulates a gain of 20.3%. “This decrease sis due to the performance of the sector fo computer equipment, electronic and optical products and in the sector of other transportation equipment, especially the production of motorcycles”, highlights the analyst.
Among the highs, Pará (9.8%) had the main result in absolute terms and the main positive influence on the national industry, leveraged by the performance od the mining and quarrying sector. “The industry in Pará has little diversity and concentrates in the mining and quarrying sector. This result comes after a 13.3% retreat in May, also due to the mining and quarrying sector. June’s movement does not eliminate May’s loss, but offsets it a little”, analyzes Mr. Almeida. He adds that this is the highest increase for the industry of Pará since February 2022, when it reached 13.7%.
The second positive influence came from São Paulo (0.8%). This is the second month in a row with increase, accumulating a gains of 1.6%. “The growth reflects the performance of the food sector, one of the most influential ones in São Paulo’s industry. With this result, São Paulo is 0.4% below the pre-pandemic level (Feb-2020) and 22.2% below its highest level, in March 2011”, adds Mr. Almeida.
Compared with June 2021, the national industry fell by 0.5% in June 2022, with 5 out of the 15 areas surveyed reporting negative rates. In the cumulative index of the year, the reduction seen in the national production (-2.2%) reached eight of the fifteen places surveyed. And in the cumulative index over 12 months (-2.8%), 11 of the 15 places surveyed recorded negative rates in June and nine indicated less dynamism.
More about the survey
The Regional PIM 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.
The survey results can also be consulted at the Sidra database.