Regional industry
Motor vehicle sector in São Paulo contributes to industry retraction in 2020
February 09, 2021 09h00 AM | Last Updated: February 09, 2021 04h32 PM
Industrial production fell in 12 of the 15 places surveyed by the IBGE in 2020, and led the national industry to close the year at -4,5%. The negative result was driven mainly by the low performance of the motor vehicle sector in São Paulo, the main negative influence. The data are from the Monthly Survey of Industry _ Regional Edtition (PIM-REG), released today (9) by the IBGE.
“Even after eight consecutive months of positive results, right after interruptions due to the stricter social isolation measures, the São Paulo vehicle sector closed the year with negative numbers. This is attributed to the low production of cars, car parts and, also, trucks”, explains the survey analyst, Bernardo Almeida.
São Paulo, which represents approximately 34% of Brazilian industrial production and closed the year with -5.7%, had other casualties in the year. "The state also had a drop in the production of machinery and equipment, mainly in the production of machinery to work with raw material in the manufacture of pulp, and also a retraction in the production of bearings for industrial equipment," he says.
The second area that most influenced the drop in the cumulative index of the year in industrial production was Rio Grande Sul (-5.4%), also due to the retraction in the motor vehicle sector, with a decrease in the production of automobiles, auto parts and bodies for buses. “The industry of Rio Grande do Sul also covers the sector of leather products, travel articles and footwear, which is very active, and it had a decrease in the production of women's leather and synthetic shoes”, says the researcher.
The other negative results of the year were recorded in the industries of Espírito Santo (-13.9%), Ceará (-6.1%), Amazonas (-5.5%), Bahia (-5.3%), Mato Grosso (-5.2%), Santa Catarina (-4.4%), Minas Gerais (-3.2%), Northeast Region (-3.0%), Paraná (-2.6%) and Pará (- 0.1%).
Pernambuco (3.7%) recorded the main increase in the cumulative index from January to December 2020, pressured, mainly, by the activities of food products. “There was an increase in the production of granulated sugar, VHP sugar and also refined cane sugar. A secondary sector to this growth is the that of beverages, which had an increase in the production of beers and draft beer, soft drinks and sugarcane brandy,” explains Mr. Almeida.
Rio de Janeiro (0.2%) and Goiás (0.1%) close the set of locations with growth in production in the cumulative index in the year. “The Rio de Janeiro industry ended up closing the year with a very modest growth, being driven mainly by the mining and quarrying sector, due to the increase in crude oil and natural gas. Next comes the pharmaceutical industry, with an increase in the production of medicines”, he says. Goiás, in turn, had its growth driven by the food industry.
Eleven locations had production growth in December
From November to December 2020, 11 of the 15 places surveyed had positive rates, following the 0.9% expansion of the national industry. The greatest expansions were in Espírito Santo (5.4%) and Ceará (4.7%). Pará (3.6%), São Paulo (3.4%), Minas Gerais (3.1%), Mato Grosso (3.0%), Paraná (2.8%), Santa Catarina (2.4%) and Rio Grande do Sul (1.2%) also showed advances above the national average (0.9%).
Rio de Janeiro (0.2%) and the Northeast Region (0.2%) completed the set of locations with positive indexes in the month.
“Between November and December, the main influence of the result is the industry of São Paulo, which reaches 3.4% growth. This is the eighth consecutive positive rate for the state and this growth is the sharpest one since September 2020, when it reached 5.3%. This result can be attributed to a positive influence in the sector of machines, appliances and electrical materials and also in the motor vehicle sector ", explains the researcher, who highlights that the São Paulo industry accumulated a gain of 54.8% in eight months and is 9% above February 2020, when social isolation measures had not been yet adopted in the country.
Bahia (-4.0%) and Amazonas (-3.7%) had the sharpest drops in December 2020, followed by Pernambuco (-2.9%) and Goiás (-0.8%).
