In the seasonally-adjusted series, the national industrial output rose 0.2% in November 2016 over the immediately previous month, after declining 1.2% in October and advancing 0.7% in September. Compared with the same month in the previous year in the series not seasonally adjusted, the overall industry dropped 1.1% in November 2016, recording the 33rd negative rate in a row in this type of comparison, though the less intense since March 2014 (-0.4%).

The industrial sector retreated 7.1% in the cumulative index in the 11 months of the year. Having decreased 7.5%, the cumulative indicator in the last 12 months reduced the pace of decline against June (-9.7%), July (-9.5%), August (-9.3%), September (-8.7%) and October (-8.4%). The complete publication of the Monthly Survey of Industry (PIM-PF) can be accessed here.

Industrial Output Indicators by Major Economic Categories
Brazil - November 2016

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

13 of 24 sectors surveyed increase in November

Thirteen out of the 24 sectors surveyed registered positive rates between October and November 2016, highlighted by the advance of 6.1% reported by motor vehicles, trailers and bodies. Other relevant positive contributions on the national overall came from mining and quarrying industries (1.5%), computer equipment, electronic and optical products (6.6%), machinery and equipment (2.4%), manufacture of wearing apparel and accessories (4.4%), non-metallic mineral products (2.2%) and rubber and plastic products (2.2%).

Among the 11 sectors that reduced the output in November, the most important performance was recorded by coke, petroleum products and biofuels, which declined 3.3%. Other important negative influences were posted by the sectors of toiletries, soaps, cleaning and personal hygiene products (-1.8%), electrical machinery and apparatus (-3.1%), other transportation equipment (-5.7%), food products (-0.3%) and fabricated metal products (-1.6%). These activities also reported negative rates in October: -1.9%, -3.4%, -4.2%, -3.3% and -2.6%, respectively.

Among the major economic categories, durable consumer goods (4.0%) and capital goods (2.5%) registered the highest positive rates in November 2016 compared with the immediately previous month, the former reversing the drop of 0.9% recorded in October and the latter offsetting part of the cumulative loss of 10.1% between July and October 2016. The segment of intermediate goods (0.5%) also rose and recovered part of the retreat of 2.0% reported in October.

On the other hand, the sector producing semi and non-durable consumer goods (-0.5%) posted the only negative rate and completed the fifth consecutive month of drop in the production, registering a cumulative reduction of 6.1%.

Quarterly moving average declines 0.1%

Still concerning the seasonally-adjusted series, the evolution of the quarterly moving average index for the overall industry declined 0.1% in the quarter ended in November 2016, against the level of the previous month, keeping the downward trend started in July 2016.

Among the major economic categories, the segment of capital goods (-1.2%) recorded the most intense retreat. The sectors producing semi and non-durable consumer goods (-0.8%) and intermediate goods (-0.2%) also reported a reduction. Conversely, the segment of durable consumer goods (1.7%) posted the only positive figure in the quarter ended in November 2016 against the level of the previous month.

Industrial output falls 1.1% in relation to November 2015

Compared with the same month a year ago, the industrial sector dropped 1.1% in November 2016, registering negative figures in two out of the four major economic categories, 16 out of the 26 sectors, 43 out of the 79 groups and 55.7% of the 805 products surveyed.

As to the activities, coke, petroleum products and biofuels (-9.3%) exerted the biggest negative influence on the industry average. Other relevant negative contributions came from electrical machinery and apparatus (-13.4%), other transportation equipment (-20.5%), non-metallic mineral products (-6.8%), beverages (-6.0%), food products (-1.5%), fabricated metal products (-7.0%), pharm-chemicals and pharmaceuticals (-7.0%) and rubber and plastic products (-4.5%).

Among the ten activities that expanded the production, the major influence was recorded by motor vehicles, trailers and bodies (13.4%). The positive figures coming from mining and quarrying industries (4.4%), pulp, paper and paper products (7.1%) and computer equipment, electronic and optical products (10.2%) should also be highlighted.

Still comparing with the same month a year ago, the category of semi and non-durable consumer goods (-4.8%) registered the steepest decline in November 2016 among the major economic categories. The sector producing intermediate goods (-0.6%) also recorded a negative figure in November, though less intense than the national average (-1.1%). On the other hand, the segments of durable consumer goods (9.0%) and capital goods (1.1%) posted positive rates in November.

The sector producing semi and non-durable consumer goods retreated 4.8% in the monthly index of November 2016, registering the seventh consecutive negative rate, though less intense than that recorded in October (-7.6%). The performance in November was mainly explained by the drop in the group of food and beverages for domestic consumption (-7.2%). The sub-sectors of non-durable (-5.0%) and fuels (-6.3%) also recorded negative figures. Conversely, the group of semi-durable (2.5%) registered the only positive figure in this category.

Having declined 0.6% in November 2016, the segment of intermediate goods registered the 32nd consecutive negative rate in the comparison with the same month in the previous year, though the less intense in this series. The November result was mainly explained by the retreats in products associated with the activities of coke, petroleum products and biofuels (-10.5%), machinery and equipment (-15.6%), non-metallic mineral products (-6.8%), fabricated metal products (-7.6%), rubber and plastic products (-4.6%) and basic metals (-1.6%), whereas the positive pressures were recorded by mining and quarrying industries (4.4%), food products (6.4%), pulp, paper and paper products (8.0%), motor vehicles, trailers and bodies (4.1%), other chemicals (2.1%) and textiles (5.9%).

It is also worth mentioning the reductions reported by the groups of typical inputs for civil construction (-9.3%), which registered the 33rd consecutive retreat in the comparison against the same month last year, and of packaging (-2.2%), which recorded the third negative rate in a row.

The production of durable consumer goods advanced 9.0% in the monthly index of November 2016 and interrupted 32 consecutive months of negative figures. This sector was particularly leveraged by the advances in car production (18.0%) and brown goods (24.2%). On the other hand, the most important negative impacts came from white goods (-13.7%), motorcycles (-9.7%), other household appliances (-11.3%) and furniture (-5.3%).

Having grown 1.1% in November 2016, the sector producing capital goods interrupted two consecutive months of dropping output: September (-6.8%) and October (-10.1%). This segment was influenced by the advances in the groups of capital goods for agriculture (24.0%) and for construction (29.1%). Conversely, the major negative impacts were posted by the sub-sectors of capital goods for industrial use (-14.5%) and for electricity (-19.6%), whereas capital goods for mixed use (-3.8%) and for transportation equipment (-0.3%) were the other negative rates.

Industry cumulatively declines 7.1% in 2016

In the cumulative index for the January-November 2016 period, over the same period in the previous year, the industrial sector dropped 7.1%. Negative rates prevailed, since the four major economic categories, 23 out of the 26 sectors, 63 out of the 79 groups and 73.5% out of the 805 products surveyed declined their production.

Among the activities, mining and quarrying industries (-10.8%), motor vehicles, trailers and bodies (-13.2%) and coke, petroleum products and biofuels (-8.4%) exerted the major negative influences on the industry average. Other relevant negative contributions on the national overall came from machinery and equipment (-12.9%), non-metallic mineral products (-11.3%), basic metals (-7.0%), computer equipment, electronic and optical products (-17.5%), other transportation equipment (-21.7%), fabricated metal products (-10.4%), rubber and plastic products (-7.8%), electrical machinery and apparatus (-8.6%), manufacture of wearing apparel and accessories (-7.4%), tobacco products (-25.5%) and furniture (-11.8%).

Among the three activities that expanded the production in the 11 months of 2016, the major influences were reported by food products (0.9%) and pulp, paper and paper products (2.7%).

Among the major economic categories, the behavior of the results for the eleven months of 2016 showed lower dynamism for durable consumer goods (-15.4%) and capital goods (-13.2%), especially pushed by the reduction in the manufacture of cars (-14.2%) and household appliances (-15.8%) in the former, and in capital goods for transportation equipment (-14.1%) and for industrial use (-12.0%) in the latter.

The segments of intermediate goods (-6.8%) and semi and non-durable consumer goods (-3.7%) also registered negative rates in the cumulative index in the year. The former segment declining slightly below the magnitude of the drop of the national average (-7.1%), and the latter recording the most moderate decline among the major economic categories.