In the seasonally-adjusted series, the national industrial output advanced 0.6% in April 2017 over March, offsetting part of the drop of 1.3% registered last March. In the seasonally-unadjusted series, the overall industry retreated 4.5% in April 2017 compared with the same month a year ago, recording the most intense drop since October 2016 (-7.5%). 

The industrial sector posted a cumulative decrease of 0.7% in the first four months in 2017. Having retreated 3.6% in April 2017, the annualized rate – cumulative indicator in the last 12 months – maintained the reduction in the pace of decline started in June 2016 (-9.7%).  The complete publication of the Monthly Survey of Industry - PIM-PF can be accessed here.

Industrial Output Indicators by Major Economic Category
Brazil - April 2017

Source: IBGE, Diretoria de Pesquisas, Coordenação de Indústria.
*Seasonally-adjusted series

13 of 24 sectors surveyed register positive figures in April

The advance of 0.6% in the industrial activity between March and April 2017 showed the predominance of positive figures, reaching three out of the four major economic categories and 13 out of the 24 sectors surveyed. Among the sectors, the main positive influences were reported by pharm-chemicals and pharmaceuticals (19.8%), motor vehicles, trailers and bodies (3.4%), coke, petroleum products and biofuels (2.0%) and machinery and equipment (4.9%). These activities recorded negative rates last March: -23.4%, -6.9%, -3.4% and -3.3%, respectively.

Other important positive contributions to the overall industry came from toiletries, soaps, cleaning and personal hygiene products (2.4%), computer equipment, electronic and optical products (6.7%), furniture (8.8%) and miscellaneous manufacturing (7.6%). Among the 11 sectors that reduced their output this month, the most relevant performance to the overall average was reported by mining and quarrying industries (-1.4%), which completed the third consecutive month of drop and a cumulative loss of 2.9%.

Among the major economic categories, intermediate goods (2.1%) and durable consumer goods (1.9%) posted the sharpest positive figures in April 2017 compared with the immediately previous month, reversing the declines reported last March: -2.5% and -7.2%, respectively. The segment of capital goods (1.5%) also advanced this month and offset part of the drop of 2.2% registered last month. On the other hand, the sector producing semi and non-durable consumer goods (-0.8%) posted the only negative rate in April 2017 and completed the third consecutive month of drop in the production, registering a cumulative loss of 4.0%.

Quarterly moving average falls 0.2%

In the seasonally-adjusted series, the evolution of the quarterly moving average index for the overall industry decreased 0.2% in the quarter ended in April 2017, over the previous month, and maintained the negative behavior registered last March (-0.5%), when it interrupted the upward trend started in October last year.

Considering the marginal movement of this index, semi and non-durable consumer goods (-1.3%) recorded the biggest retreat this month and intensified the pace of decline against that reported in the previous month (-0.3%). The sector producing intermediate goods (-0.1%) also posted a negative result in April 2017, after dropping 0.6% last March. On the other hand, the segments of capital goods (1.7%) and durable consumer goods (0.5%) reported positive rates in April 2017, the former interrupting the downward trend started in November 2016 and the latter increasing once again after declining 1.9% last March.

Industrial output retracts 4.5% in relation to April 2017

Compared with the same month a year ago, the industrial sector reduced 4.5% in April 2017, recording negative figures in three out of the four major economic categories, 18 out of the 26 sectors, 56 out of the 79 groups and 59.4% of the 805 products surveyed.

Among the activities, food products (-16.4%) exerted the biggest negative influence. Other relevant negative contributions came from coke, petroleum products and biofuels (-7.8%), electrical machinery and apparatus (-18.5%), pharm-chemicals and pharmaceuticals (-13.9%), beverages (-9.1%), non-metallic mineral products (-6.6%), machinery and equipment (-3.2%) , other transportation equipment (-10.1%) and furniture (-10.3%).

Among the eight activities that increased their production, still comparing with April 2016, the major influences on the overall industry were registered by mining and quarrying industries (4.4%), basic metals (7.5%) and computer equipment, electronic and optical products (9.8%).

Still comparing with April 2016, semi and non-durable consumer goods (-9.8%) and capital goods (-5.5%) registered the steepest declines among the major economic categories in April 2017. The segment of intermediate goods (-3.0%) also recorded a negative figure this month, though less intense than the national average (-4.5%). By advancing 0.6%, the sector producing durable consumer goods registered the only positive rate.

By retreating 9.8% in April 2017, the manufacture of semi and non-durable consumer goods recorded the third consecutive negative rate compared with the same month last year and the sharpest loss since May 2015 (-10.5%). The performance in April was explained, at a larger extent, by the drop in the group of food and beverages for domestic consumption (-10.7%). The sub-sectors of non-durable (-10.8%), fuels (-14.3%) and semi-durable (-2.0%) also posted negative figures this month.

The sector producing capital goods declined 5.5% in April 2017 and interrupted five months of consecutive positive rates when compared with the same month a year ago. In the formation of the index this month, the segment was influenced by the drop seen in the majority of its groups, with a highlight to the reduction of capital goods for transportation equipment (-8.6%), particularly pressed by the reduced manufacture of planes, tractor trucks and trucks. The other negative rates were registered by capital goods for electricity (-24.4%), for industrial purposes (-11.5%) and for mixed use (-0.4%). Conversely, the major positive impact was reported by the group of capital goods for agriculture (21.0%). Capital goods for construction registered a positive figure (14.3%).

Still comparing with the same month last year, the segment of intermediate goods fell 3.0% in April 2017, after advancing 0.7% last March. The result of this month was mainly explained by the retreat in the products associated with the activities of food products (-22.6%), coke, petroleum products and biofuels (-4.9%), non-metallic mineral products (-6.6%), machinery and equipment (-10.1%), fabricated metal products (-2.9%), rubber and plastic products (-1.9%) and other chemicals  (-0.4%), whereas the positive pressure was exerted by mining and quarrying industries (4.4%), basic metals (7.5%), motor vehicles, trailers and bodies (3.3%) and pulp, paper and paper products (0.8%).

The segment of durable consumer goods increased 0.6% in the monthly index of April 2017, recording the sixth consecutive positive figure in this type of comparison, yet the less intense in this series. This sector was particularly leveraged this month by the advances in car production (4.6%) and brown goods (14.2%). It is also worth mentioning the expansion of 2.5% in the manufacture of motorcycles. On the other hand, the groups of white goods (-13.4%), other household appliances (-10.9%) and furniture (-12.0%) posted the most important negative impacts.

Industry drops 0.7% in the January-April 2017 period

Compared with the same period in the previous year, the cumulative index for the January-April 2017 period dropped 0.7%, registering negative figures in two out of the four major economic categories, 12 out of the 26 sectors, 39 out of the 79 groups and 49.6% of the 805 products surveyed. Among the activities, coke, petroleum products and biofuels (-9.1%) and food products (-6.2%) exerted the major negative influences.

Other relevant negative contributions to the national overall came from pharm-chemicals and pharmaceuticals (-15.0%), electrical machinery and apparatus (-8.1%), other transportation equipment (-9.5%), non-metallic mineral products (-3.3%) and printing and reproduction of recorded media (-11.5%). Among the 14 activities that increased their output, the major influences on the national overall were reported by mining and quarrying industries (7.2%) and motor vehicles, trailers and bodies (8.9%). Other relevant positive contributions to the industry average came from computer equipment, electronic and optical products (17.7%), basic metals (3.5%) and manufacture of wearing apparel and accessories (5.5%).

Among the major economic categories, the profile of the results for the first four months of 2017 was less dynamic in terms of semi and non-durable consumer goods (-3.0%) and intermediate goods (-1.0%).

Conversely, the segments of durable consumer goods (8.7%) and capital goods (1.9%) registered positive rates in the cumulative index in the year, leveraged, at a large extent, by the increasing manufacture of cars (14.0%) and household appliances (13.5%), in the former; and of capital goods for agriculture (27.5%) and for construction (22.8%), in the latter. 

Social Communication
2 june 2017