Regional industry
Industrial output closes 2023 with growth in ten out of 18 places surveyed
February 08, 2024 09h00 AM | Last Updated: February 08, 2024 04h04 PM
The production of the national industry rose 1.1% between November and December, with an expansion in ten out of 15 places surveyed. With the result of the last month of the year, 2023 closes with a change of 0.2% in relation to 2022, showing positive rates in ten out of 18 places surveyed. These are the results of the Monthly Survey of Industry (Regional PIM), released today (8) by the IBGE.
The highest rises in the year were the results in Rio Grande do Norte (13.4%) and Espírito Santo (11.1%), mainly due to the activities of coke, petroleum products and biofuels (diesel fuel and motor gasoline) and food products (toasted or salted peanuts, cashew nuts and the like, and cakes, candies and other similar products produced in bakeries) in the former, and of mining and quarrying industries (pelletized or sintered iron ore and crude petroleum oil) in the latter.
On the other hand, Rio de Janeiro exerted the major influence on the cumulative index in the year, showing a growth of 4.5%. “This result can be explained by the performance of the mining sector and that of petroleum products, two very active segments in the Rio de Janeiro industry,” explains Bernardo Almeida, an analyst of the survey.
Goiás (6.1%), Pará (5.4%), Mato Grosso (5.2%), Minas Gerais (3.4%), Amazonas (2.1%), Pernambuco (1.9%) and Paraná (1.5%) also grew their output in the cumulative index in 2023.
“In 2023, a downturn not only in the pace of the regional industry, but of the whole industry was noticed. The evolution of certain short-term factors related to the interest rate and labor market allowed an improvement in the behavior of the industrial output from the second semester onwards, though still far from the most significant levels. A cool and moderate production pace in industry prevailed,” highlights Almeida.
In contrast, Ceará (-4.9%), Maranhão (-4.8%) and Rio Grande do Sul (-4.7%) recorded the most significant drops in the cumulative index in the year. It was mainly due to the retreats reported in the sectors of manufacture of wearing apparel and accessories (children´s wearing apparel and its knitted accessories, panties, breeches, dungarees, shorts, pants and the like, shirts, blouses and the like, trousers, bras and dresses), chemicals (herbicides for plants and pesticides for use in agriculture) and fabricated metal products (corks, caps or metallic capsules, containers for transportation or gas storage and aluminum cans for packaging) in the first place; of basic metals (aluminum oxide) in the second one; and of coke, petroleum products and biofuels (diesel fuel, naphthas and fuel oils), machinery and equipment (harvesters, seeders, planters or fertilizers, agricultural tractors and manual non-electrical hydraulic tools), food products (frozen, fresh or cooled poultry and giblets, frozen pork, animal feed, whole grape juice, sterilized/UHT/long-life milk, and tarts, bagasses, bran and other residues from soybean oil extraction) and fabricated metal products (firearms and its pieces, pieces and accessories and aluminum gadgets for domestic use) in the last one.
Northeast Region (-3.5%), Bahia (-1.8%), São Paulo (-1.5%), Santa Catarina (-1.3%) and Mato Grosso do Sul (-0.7%) registered the other negative rates in the cumulative indicator in the January-December 2023 period. “São Paulo was responsible for the biggest negative influence on the national figure. Industry in São Paulo behaved similarly as the national industry, also affected by high interest rates and reduced credit supply,” adds Almeida. He reminds that ten out of 18 activities surveyed in the São Paulo industry recorded negative figures, highlighting the sectors of computer, electronic and optical products and chemicals.
Ten out of 15 places surveyed reported positive results in December over November
Compared with the previous month, the industrial output rose 1.1% in December 2023, with ten out of 15 places surveyed reporting positive figures. The most significant advances came from Pernambuco (11.6%), Amazonas (7.4%) and Santa Catarina (7.2%), with the first place offsetting a loss of 11.1% reported in the previous month; the second one interrupting three consecutive months of drops in the output, a period in which it accumulated a reduction of 14.3%; and the last place growing once again, after declining 1.4% in November.
Ceará (5.0%), Goiás (5.0%), Espírito Santo (3.2%), Pará (2.9%), Northeast Region (2.7%) and Rio Grande do Sul (2.0%) also registered more intense positive rates than the national average (1.1%). Minas Gerais (0.2%) completed the list of places with positive indexes in December 2023.
Conversely, Rio de Janeiro (-4.7%) and Paraná (-4.0%) were responsible for the most intense reductions this month, both of them offsetting part of the advances reported in November: 4.9% and 4.8%, respectively. Mato Grosso (-3.3%), São Paulo (-2.1%) and Bahia (-1.4%) recorded the other negative figures in December.
Twelve places rose in relation to December 2022
Comparing December 2023 with December 2022, the industrial sector grew 1.0%, with 12 out of 18 places surveyed reporting positive results.
Espírito Santo (31.4%), Rio Grande do Norte (25.7%), Goiás (22.0%), Pernambuco (15.4%) and Pará (14.6%) registered two-digit advances, being the most intense ones. Minas Gerais (6.6%), Ceará (6.2%), Rio de Janeiro (5.5%), Bahia (5.0%), Santa Catarina (3.6%), Northeast Region (2.8%) and Mato Grosso (1.9%) completed the list of places that grew their output in the monthly index of December 2023.
On the other hand, Maranhão (-11.4%) and Rio Grande do Sul (-8.3%) recorded the steepest drops. Mato Grosso do Sul (-6.0%), Paraná (-3.0%), Amazonas (-1.5%) and São Paulo (-1.0%) reported the other negative figures in December.
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 17 Federation Units, each one accounting for at least 0.5% of the national value of manufacturing, and also for the Northeast Region as a whole: Amazonas, Pará, Maranhão, Ceará, Rio Grande do Norte, 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 results of the survey can also be viewed on Sidra, the IBGE database. The next release of the Regional PIM, related to January 2024, will be on March 13.
