Industrial production grows in four of the 15 locations surveyed in July
September 09, 2022 09h00 AM | Last Updated: September 12, 2022 05h46 PM
Industrial production dropped in four out of 15 places surveyed by the Monthly Survey of Industry (Regional PIM) between June and July, when the national index advanced 0.6%. The survey, released today (Sept 9) by the IBGE shows highs in Pará (4.7%), Mato Grosso (3.7%), Santa Catarina (1.9%) and Rio de Janeiro (0.7%), all with results above the national average.
Growth in such places can be attributable to measures that had a direct impact on the producing chain and the consumption of households. “ICMS reduction on fuels and increase in social welfare changed decisions made by producers, in view of such measures”, explains PIM Regional analyst Bernardo Almeida.
Among the highs for July, Mr. Almeida points out which were the major industries responsible for growth in each area. “Growth in Pará was mostly due to the iron ore mining industry. In Rio de Janeiro, the mining and quarrying sector was also the greatest responsible dor the rise, with a highlight to petroleum and natural gas. In Santa Catarina, we have machinery and equipment sectors and rubber products and plastic material. In Mato Grosso, the major sector that influenced positively the result was that of food”, adds Mr. Almeida.
The main negative results were in Espírito Santo (-7.8%), intensifying the 1.3% decrease of June; Bahia (-7.3%) offsetting the cumulative gains of 7.6% observed between February and June; and the Northeast Region (-6.0%), which had decrease in the 6.8% production in three consecutive months. Conversely, Minas Gerais stood stable (0.0%).
“The negative effects seen in the previous releases still remain. In terms of supply, the availability of input and the high prices of raw-materials, in terms of demand, inflation and high interest, causing credit to become more expensive. All this results in a direct impact on household consumption and producing chain”, says Mr. Almeida.
The state of São Paulo, the greatest industrial park of the country, presented a 0.6% decrease compared to June. This result represented the second biggest influence on the national industrial result, only behind Bahia in July. “The sectors with the biggest negative impact won the result of the industry in São Paulo were motor vehicles and the sector of machinery and equipment. Even with the positive factors, with the governmental measures, the negative effects still remain, such as high inflation, expensive credit and expensive raw-material as well as fewer input. Just as in the national industry, these factors can also be seen in the industry in São Paulo. With this result, the industry in São Paulo is 1.5% below its pre-pandemic level”, says he analyst.
Compared to July 2021, the industrial sector retreated 0.5%, with four of the fifteen places surveyed presenting a negative rate. This month Espírito Santo (-10.6%) pointed out a two-digit reduction (the sharpest one) whereas Mato Grosso (25.6%) stood out as a positive highlight. It is worth pointing out that July 2022 (21 days) had one less business day than the same month in 2021.
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.