Industrial production shrank in ten of the 15 anaysed places by the Monthly Survey of Industry (PIM - Regional), from May to June. The main drops were in Paraná (-5.7%) and in Pará (-5.7%). The drop in São Paulo (-0.9%) had a great influence in the result. The results were released today (August 11) by the IBGE. The industrial production had no change (0.0%), as released by the IBGE last week (August 3).

With June’s result, five places are above the pre-pandemic level of February 2020: Minas Gerais (15.5% above), Amazonas (9.4%), Santa Catarina (6.1%), Rio de Janeiro (4.2%) and São Paulo (3.4%). Since July 2020, when the comparative analysis with the pre-pandemic level began, Minas Gerais is the only place that has kept its rate above the level. São Paulo, in turn, was above in September and has remained above since then.

“The rise in May took place after some relaxation of social isolation measures compared to April, when there were more interruptions in the production chain due to the intensification of the Covid-19 pandemic. The result of June, on the other hand, showing stability, demonstrates more realistically the environment in which the national industry finds itself”, says the survey manager, Mr. Bernardo Almeida.

Paraná, the main negative influence and the place with the greatest absolute fall, registered a decline of 5.7%, the sharpest one since April 2020 (-27.1%), when the shutdown of industrial units due to the pandemic hit its peak. June index was driven by the underperformance of motor vehicles and petroleum products. It was the third negative rate in a row for the southern state, with an cumulative loss of 10.2%.

Pará tied up with Paraná in termso of the greatest absolute drop and was the third main influence on the overall result. The most relevant contribution to the retreat came from the basic metal sector. The sector of pulp, paper and paper products and the sector of non-metallic mineral products also contributed to the fall in the northern state, which registered the second consecutive negative rate, accumulating a loss of 7.9% in the period.

São Paulo, the largest industrial park in the country, was the second main influence in the month, with a drop of 0.9%, mainly attributed to the motor vehicle sector - the strongest activity in the state of São Paulo. “The sector of electrical machinery, equipment and material also contributed to the result, with its lower performance”, adds Mr. Almeida. Even so, the state is above the pre-pandemic level.

The other areas with a decrease in production in June are: Pernambuco (-2.8%), Mato Grosso (-1.9%), Espírito Santo (-1.6%), Goiás (-1.1%), Rio Grande do Sul (-0.9%), Minas Gerais (-0.6%) and Santa Catarina (-0.3%).

On the rise are Bahia (10.5%) and the Northeast Region (6.4%) as highlights, with the greatest increases in absolute terms, as well as Rio de Janeiro (2.8%), which, due to its importance, exerted the greatest influence on the positive results of the industry. Thanks to the good performance of basic metals and petroleum products in the month, the state of Rio de Janeiro had the third consecutive positive rate, accumulating a 10.3% gain in the period.

The increase in Bahia, the second largest influence, was driven by the good result of petroleum products, which are very active within the industry at the state of Bahia. It is the second consecutive rate for the state, with a cumulative gain of 11.1%. As the calculation of the Northeast Region covers all states, the positive performance of Bahia also affected the region, whose increase was influenced by, in addition to petroleum products, leather, travel goods and footwear.

With the positive result in June, the Northeast interrupts six consecutive months of production decrease, a period in which it accumulated a loss of 21.1%. Amazonas (4.4%) and Ceará (3.8%) are the other places with increased industrial production in the month.

Compared to June 2020, ten locations have increased

In comparison with June last year, whose national growth was 12%, ten of the 15 places surveyed had increase. The survey manager highlights that the result is largely influenced by the low basis of comparison. “In June 2020, the industrial sector was under the pressure of several shutdowns in industrial plants, especially resulting from social isolation measures due to the Covid-19 pandemic”, emphasizes the manager. It is also worth mentioning that June 2021 had the same number of business days as June 2020 (21 days).

Espírito Santo (34.3%) and Ceará (31.1%) registered the highest increases. Amazonas (24.0%), Santa Catarina (23.2%), Minas Gerais (23.1%), Rio de Janeiro (15.3%), São Paulo (14.6%) and Rio Grande do Sul ( 13.4%) also registered more intense advances than the national industry average. Paraná (8.2%) and the Northeast Region (3.5%) close the set of places with increased production in June.

On the other hand, Pará (-8.0%) and Bahia (-7.9%) showed the biggest falls in the comparison, followed by Mato Grosso (-6.9%), Goiás (-4.2%) and Pernambuco (-2.7%).

More about the survey

Since the 1970s, PIM – Regional Edition has been producing short-term indicators relating to the behavior of the real product of the mining and quarrying and manufacturing industries. It brings, monthly, indexes for 14 Federation Units, whose participation is at least 1% in the total value of the 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.