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PIM Regional

Industrial production advances in six of the 15 locations surveyed in October

Section: Economic Statistics | Umberlândia Cabral

December 09, 2022 09h00 AM | Last Updated: December 12, 2022 11h26 AM

Influenced by mining and quarrying, industrial production in Pará increased by 5.2% in October - Photo:TV Brasil

From September to October, industrial production increased in six of the 15 locations surveyed by the Regional Monthly Survey of Industry (PIM). In the general result, the country's industry changed by 0.3% in the same period. The major increases in this comparison were registered by Pará (5.2%) and Goiás (3.0%). The data were disclosed today (9) by the IBGE.

The growth of industrial production in Pará came after two consecutive months of decline, a period in which it accumulated a decline of 9.3%. “Pará ranked first in terms of positive influences on the national result and this 5.2% growth recovers part of the cumulative loss in previous months. This can be explained by the good performance of the mining and quarrying sector, which is one of the main industries in Pará”, explains survey analyst Bernardo Almeida, who also adds the food industry among the positive results of the state.

Goiás, with the increase in October, recovers the loss registered in the previous month (-2.6%). “This state appears ranks the fifth place in influence on the country's production and we can attribute this month's growth to the results of the motor vehicle sector and the pharmaceutical industry”, highlights the researcher.

Other places that had positive results in relation to the previous month were Minas Gerais (1.7%), Rio de Janeiro (1.1%), Rio Grande do Sul (0.5%) and São Paulo (0.4%). The Minas Gerais industry was the second with the greatest impact on the general index and, among its prominent sectors, are basic metals and motor vehicles.

In turn, the increase in Rio de Janeiro is linked to the mining and quarrying sector and to petroleum derivatives and biofuels. “The Rio de Janeiro mining and quarrying industry, which has a significant weight in the state's industrial sector, refers to petroleum refining and natural gas”, explains Mr. Alemeida.

São Paulo, which accounts for around 34% of national industrial production, was the fourth main influence on the 0.3% change in the overall result. “Differently from what usually happens, São Paulo did not exert the main influence on this result. The sector that most impacted this positive change in São Paulo's industry in October was petroleum derivatives. There was also the impact of positive results from rubber and plastic material products and pharmaceuticals,” he says. The researcher points out that, although it advanced in October, the change was not enough to recover the loss of 3.2% in the industrial production of the state in the previous month.

According to Mr. Almeida, the decrease in the impact of the São Paulo industry result on the general index is related to the deceleration of the sector itself. “We have observed this whole situation of the industry moving gradually, registering a decline in some periods and in others, a more timid growth. There is inflation at high levels, which impacts the production chain, the purchasing power of families and the decision-making of industrial producers and investors. These are some of the factors that may explain this loss of rhythm”, highlights the analyst.

Among the declines, the highlights were Ceará (-13.7%) and Mato Grosso (-11.5%), which had the most expressive decreases. “In Ceará's industry, the drop is explained by the negative results of leather goods, travel items and footwear, which has a great influence on the state's industrial sector. The industry's own supply and demand equalization strategies may explain the slowdown in production this month,” he says. Industrial production in Ceará had grown by 5.1% in the previous month.

The drop in production in Mato Grosso is related to the behavior of the food industry in the state. “This sector in Mato Grosso is closely linked to the slaughter of animals, mainly cattle. In comparison with the same period last year, the sector has gained pace, but there is a drop compared to the previous month. Another negative influence on the state's industry was the oil derivatives and biofuels sector,” he says.

Among the areas that registered a drop in production, the main negative influence came from Paraná (-9.1%). “The industry of Paraná has the fifth negative rate in a row, accumulating a loss of 16.5% in this period. In October, what justifies this retraction is also the impact of petroleum derivatives and biofuels”, analyzes Mr. Almeida.

Seven locations advance in the interannual comparison

The domestic industry increased by 1.7% compared to October last year and seven of the fifteen areas surveyed followed the positive result. The biggest rises came from Mato Grosso (15.8%) and São Paulo (7.7%). “The greatest impact on the national result also came from São Paulo. Of the 18 activities of industry in São Paulo, 12 are growing and, among them, the food industry has the greatest influence, mainly due to the greater production of crystal sugar and VHP, candy and chocolates with cocoa and frozen beef. The motor vehicle sector also stands out”, says the analyst.

Other expansions were registered by Rio de Janeiro (6.5%), Minas Gerais (6.4%), Goiás (6.2%), Amazonas (1.8%) and Pernambuco (0.2%), while Rio Grande do Sul remained stable (0.0%). Also in the interannual comparison, there was a reduction in the industrial production in seven areas: Espírito Santo (-20.7%), Paraná (-14.5%) and Ceará (-11.9%), Bahia (-7.2%), Northeast Region (-5.0%), Santa Catarina (-2.7%) and Pará (-2.3%).

More about the survey

PIM Regional has produced, since the 1970s, short-term indicators relating to the behavior of real output in mining, quarrying and manufacturing industries. It brings, monthly, indices for 14 Federation Units whose participation is at least 1% of the total value of national industrial manufacture and also for the Northeast 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 Northeast Region.

The survey results can also be consulted on Sidra, the IBGE database.

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