After a two-month drop, industry changes 0.3% in October
December 02, 2022 09h00 AM | Last Updated: December 05, 2022 11h35 AM
The industrial output positively changed 0.3% between September and October, interrupting two consecutive months of drops, a period in which it accumulated a loss of 1.3%. Only seven out of 26 sectors surveyed grew. With these results, this sector is still 2.1% below the pre-pandemic level (February 2020) and 18.4% below the record level of May 2011.
Industry advanced 1.7% in relation to October 2021. In the year (January-October 2022), industry accumulated a drop of 0.8% and, in 12 month, a retreat of 1.4%. The data are from the Monthly Industrial Survey (PIM), released today (2) by the IBGE.
“Although the industrial output improved in the beginning of the year, since it registered positive figures for four months in a row, the sector has been showing a predominantly negative behavior in the last months. In three opportunities in the last five months, the output dropped and with a higher number of industrial activities on the negative side, standing far from recovering the losses of a recent past,” analyzes André Macedo, manager of the survey.
The economic activities that exerted the biggest positive influence on the month against the previous month were food products (4.8%) and basic metals (4.6%), the former offsetting part of the cumulative loss of 7.1% in the months of September and August. The latter grew once again, after declining 7.6% in the previous month.
On the other hand, motor vehicles, trailers and bodies (-6.7%), machinery and equipment (-9.1%) and beverages (-9.3%) exerted the major negative impacts in October, the first one recording the second consecutive month of reduction in the output and accumulating a loss of 6.8% in this period; the second one offsetting part of the advance of 16.9% in the months of September and August; and the last one stepping up the retreat reported in the previous month (-5.7%).
Leather, traveling goods and footwear (-13.2%), other chemicals (-3.0%), miscellaneous manufacturing (-12.5%), manufacture of wearing apparel and accessories (-7.1%), wood products (-8.8%), rubber and plastic products (-2.6%) and electrical machines, appliances and material (-3.5%) retreated as well.
Industrial sector advanced 1.7% compared with October last year
The positive figures in three out of four major economic categories, 9 out of 26 sectors, 29 out of 79 groups and 44.2% of the 805 products surveyed resulted in a rise of 1.7% this month, compared with October 2021.
Among the activities, the major positive influences in this comparison came from food products (12.2%), motor vehicles, trailers and bodies (12.6%) and mining and quarrying industries (4.5%). Computer equipment, electronic and optical products (14.6%), other transportation equipment (30.0%), pharmaceuticals (10.1%) and pulp, paper and paper products (2.7%) also contributed positively.
Among the activities that dropped, wood products (-24.5%), coke, petroleum products and biofuels (-2.3%), beverages (-5.9%) and basic metals (-3.7%) also recorded a major impact on industry.
More on the survey
PIM Brazil has been producing short-term indicators since the 1970s regarding the behavior of the real product of mining and quarrying and manufacturing industries. From May 2014, the release of a new series of monthly industrial production indices began, after a reformulation to: update the sample of activities, products and respondents; prepare a new weighting structure for the indices based on the most recent industrial statistics, in order to harmonize with the needs of the implementation the National Accounts Series - reference 2010; and to adopt the new classification of activities and products used by other industry surveys from 2007 onwards, namely: the National Classification of Economic Activities - CNAE 2.0 and the List of Industrial Products - PRODLIST-Industry.
The survey results can also be consulted at the Sidra database.