Regional industrial indicators showed expansion in production in 13 of the 14 localities surveyed, in May 2005 over May 2004. In comparison with the same month one year ago, growth rates in Amazonas (24.6%), Paraná (13.5%), Ceará (7.2%), São Paulo (6.3%) and Minas Gerais (5.5%) were above the national average (5.5%), whereas in Pará (4.4%), Santa Catarina (3.5%), Espírito Santo (2.2%), Northeast region (1.9%), Rio de Janeiro (1.5%), Goiás (1.4%), Pernambuco (0.9%) and Bahia (0.4%) they were below that figure. Rio Grande do Sul (-2.4%) registered its fifth negative consecutive result. The index accumulated from January to May increased in all the localities, except in Rio Grande do Sul. The index accumulated in the last twelve months presented positive results in all the areas surveyed, with deceleration in ten localities, from April to May.

In relation to the quarterly average of 2005 (3.8%), the months April-May (5.9%) had increased growth rate in comparison with other periods. This tendency was also observed in nine of the fourteen localities surveyed, especially in Amazonas, which advanced 14.0% in Q1 2005, 23.4% in April-May, and Goiás (from 3.8% to 9.3%).

Concerning the index accumulated from January to May 2005, the highest rate in terms of performance by area was measured in Amazonas (18.1%). The expansion, in this case, is being influenced by electronic material and communication equipment (especially mobile telephones and television sets). With results influenced by the subsector of automotive vehicles, other highlights are Santa Catarina (7.3%), Minas Gerais (7.2%) and Paraná (6.5%). The increase observed in the production of durable goods is a consequence of exports and of continuous credit offers, in relation to the internal market. Also above average (4.7%), between January and May, were Ceará (6.8%), with the major positive contributions from the subsectors of apparel and textiles; Goiás (6.1%), reflecting the impact of soybeans exports; Northeast region (5.9%), due to food products and beverages; São Paulo (5.8%), pharmaceutical industry – with the most relevant contribution – and machinery and equipment; and Pará (5.0%), supported by the production of iron ore. Below the national average, in the index accumulated from January to May: Espírito Santo (4.2%), Bahia (3.3%), Pernambuco (2.1%) and Rio de Janeiro (1.9%).

Amazonas

In May, industry in Amazonas presented high expansion rates. In comparison with the same period of 2004 the results were: 24.6% in the monthly index, 18.1% accumulated in the year and 13.6% in the last twelve months. The subsector of electronic material and communication equipment is the major contributor to the industry in the state.

The monthly indicator had the tenth consecutive positive rate (24.6%), influenced, above all, by the performance of the subsector of electronic material and communication equipment (55.1%), due to the manufacturing of mobile telephones, and to some extent to the manufacturing of television sets. Other subsectors which contributed positively to the overall results were transportation equipment (9.3%) and chemical products (39.3%), and the highlights in this case were, motorcycles and bicycles and photographic films and paper, respectively. On the other hand, four of the eleven subsectors surveyed contributed negatively to the overall result: rubber and plastic (-27.5%) and medical, optical and other types of equipment (-4.4%), with reduction in the manufacturing of PET bottles; plastic parts and accessories; wristwatches and lenses for glasses, as the main highlights.

With the production accumulated in the year growing by 18.1%, the industrial sector in the state presented increased above the rates of April (16.3%). The positive performance reflected the positive results reached by seven of the eleven subsectors surveyed, with electronic material and communication equipment as the main highlight (38.2%), due to the manufacturing of mobile telephones and television sets. To a moderate extent it is important to mention the performance of food products and beverages (11.2%) and transportation equipment (10.6%), with progress in syrup for the elaboration of beverages and drinks; motorcycles, parts and accessories and other items. On the other hand, rubber and plastic (-22.9%) and petroleum refinement and alcohol production (-5.9%) are the major negative contributions, affected, to a great extent, by the decrease in the manufacturing of plastic parts and accessories and PET bottles; gasoline, diesel and other fuels.

Pará

In May, the industry of Pará grew by 4.4% in production, in comparison with the same month one year ago. The result was inferior to that of April (6.7); The index accumulated in the year was 5.0% and in the last twelve months 9.3%.

Concerning the monthly indicator, the development of quarrying industry (18.5%) was the main responsible for the increase of 4.4% in the state. This activity, which accounts for over 40.0% of the local industry, has the extraction of iron ore as its main highlight. Another subsector in expansion was metallurgy (2.2%), due to the production of unconnected aluminum in raw form. The remaining subsectors surveyed registered negative rates, especially food products and drinks (-12.5%) and non-metallic minerals (-22.0%), with reduction of the production of frozen crustaceans and kaolin, respectively.

The increase by 5.0% of the indicator accumulated between January and May results from the good performance of quarrying industry (11.1%), which was stimulated by the increase in the extraction of iron ore. The subsector of metallurgy also grew (4,5%), due to the production of unconnected aluminum in raw form and aluminum oxide. The major negative contributions came from non-metallic minerals (-8.0%) and cellulose and paper (-6.5%), with reduced production of kaolin and cement and of toilet paper, respectively.

Northeast

The industrial production in the Northeast region presented, in May, positive results for the main industrial indicators: 1.9% for the monthly indicator, 5.9% accumulated in the year and 8.4% in the last twelve months.

For the sixteenth consecutive month, the industrial production in the Northeast region expanded in terms of the monthly indicator, with positive results in six of the eleven industrial subsectors surveyed. The major positive contribution to the formation of the rate of 1.9% came from chemical products (12.1%), because of the increased production of ammonium sulphate and polyethylene. The good performances of food products and beverages (2.8%), especially of the items beer and draft beer and butter, and of non-metallic minerals (11.4%), due to the manufacturing of pre-fabricated elements for construction with cement or concrete, were also important. The major falls came from the subsectors of petroleum refinement and alcohol production (-9.2%) and basic metallurgy (-12.7%), explained, respectively, by the reduced production of diesel and other fuels, and copper bars, square bars and profiles.

Concerning the indicator accumulated in the year, the industry in the Northeast grew by 5.9%, with positive results in nine of the eleven subsectors surveyed. The major positive contributions came from food products and drinks (8.2%), due to the increase of the production of beer and draft beer, soft drinks; and from chemical products (8.6%), due to the production of polyvinyl chloride (PVC) and non-saturated ethylene. On the other hand, the only falls came from metallurgy (-3.0%) and quarrying industry (-2.4%), due to the reduced production of copper bars, square bars and profiles, and of crude petroleum oil, respectively.

Ceará

In May, the industrial production in Ceará, grew by 7.2% in the comparison with the same month in the previous year. The indicators for longer periods remained positive : 6.8% accumulated in the year and 13.5% accumulated in the last twelve months.

The monthly indicator registered expansion of 7.2%, with growth in nine of the ten industrial activities surveyed. The major positive influence came from apparel (22.6%), due, mainly, to the increased production of professional apparel and female slacks. It is also worth mentioning the increments registered in chemical products (28.9%) ad non-metallic minerals (30.9%), due, mainly, to the production of oxygen and vaccines for veterinary use; and of cement and paving-tile. On the other hand, metallurgy (-8.2%) presented the only decrease, due to carbon steel square bars.

With reference to the indicator accumulated in the year, the industrial production in Ceará had an increase of 6.8%, with increment in seven of the ten subsectors surveyed. The major positive impacts were apparel (38.4%),due to the production of female slacks and professional apparel; and of textiles (7.1%), due to the items cotton cloth and cotton thread. The major negative contributions came from the metallurgy (-19.2%) and petroleum refinement and alcohol production (-4.5%), explained, respectively by the decrease of carbon steel square bars, diesel and other fuel oils.

Pernambuco

In May, the industrial indicators of Pernambuco grew by 0.9% in terms of monthly indicator, presenting a different result from that of April (-1.5%); the index accumulated in the year was 2.1%, and, in the last twelve months, 3.3%.

The industry in Pernambuco had an increment of 0.9% in the monthly indicator, with only five of the eleven subsectors presenting positive rates. The result was due to the performance of chemical products (30.3%), represented by rubber and calcium hypochlorite and to the performance of metallurgy (13.0%) and of cellulose and paper (46.4%), due, respectively, to the increased production of aluminum plates and straps and of carbon steel square bars; paper bags and corrugated cardboard boxes. The main falls came from food products and beverages (-8.0%) and rubber and plastic (-31.1%), due, respectively, to the reduction of the production of cachaça (Brazilian liquor made from distilled sugar cane juice), and plastic tubes, pipes and hoses.

The indicator accumulated in the year grew by 2.1%, with seven of the eleven industrial subsectors surveyed presenting positive rates. The major positive impacts were observed in chemical products (13.4%), influenced by the production of rubber and calcium hypochlorite; and in machines, appliances and electric material (14.6%), due to the increased production of consumer and electric batteries. The major positive contributions came from metallic products (-19.9%) and textiles (-31.7%), due, respectively, to the fall of aluminum cans for storage and cotton cloth.

Bahia

In May, the industry in Bahia registered positive change of 0.4% in comparison with May 2004, a result inferior to that of April (5.5%); the indicator accumulated in the year was 3.3% and in the last twelve months it was 8.2%.

The industrial production in the state presented change of 0.4% in the monthly indicator, with positive rates in six of the nine industrial subsectors surveyed.. The good performance of chemical products (10.2%) was the main positive contribution, due to the increased production of polyethylene and non-saturated ethylene. Other positive contributions, of lower intensity, were those from food products and beverages (7.7%) and automotive vehicles (35.0%). The highlights were, respectively, the production of butter, wheat flour and automobiles. These three subsectors practically did not grow, a fact attributed to the fall of two important subsectors of the industry in Bahia: metallurgy (-27.4%), due to the reduced production of copper bars, square bars and profiles, and to a lesser extent, to the reduced production of golden bars; petroleum refinement and alcohol production (-9.2%), with irrelevant production of diesel and other fuel oils.

Concerning the indicator accumulated in the year, the industry in Bahia grew by 3.3%, with increment in six of the nine subsectors surveyed. The major positive contributions came from chemical products (6.0%), stimulated by the increased production of non-saturated ethylene and polyvinyl chloride (PVC); and of food products and beverages (11.6%), due to the increase in the production of refined soybeans oil and wheat flour. The major negative influences came from metallurgy (-12.1%) and petroleum refinement and alcohol production (-1.4%) due, respectively, to the reduction of the production of copper bars, square bars and profiles; diesel and other fuel oils.

Minas Gerais

In May 2005, the national production of Minas Gerais presented positive rates : 5.5% accumulated in the month, 7.2% accumulated in the first five months of the year and 7.3% accumulated in the last twelve months.

The increase of 5.05% of the industrial production in Minas, in comparison with the same period in the previous year, is a consequence of the expansion of quarrying industry (16.6%) as well as of manufacturing industry (3.7%). The first one can be explained, above all, by the positive performance of iron ore, whereas the second reflects the growth of seven of the twelve subsectors surveyed, especially automotive vehicles (23.1%), metal products (40.0%) and non-metallic minerals (21.4%). The aforementioned results were influenced by the following items: automobiles; metallic structures and screens made of iron and steel; and cement, respectively. The main negative contributions came from metallurgy (-11.2%) and petroleum refinement and alcohol production (-23.5%), due to the retraction of bobbins or stainless steel plates, and of diesel and other fuels, respectively.

The increase of 7.2% of the indicator accumulated in the year reflected, above all, the increase observed in nine of the thirteen subsectors surveyed. The main highlights were automotive vehicles (15.8%), quarrying industry (13.7%) and metal products (30.9%). In these subsectors, the positive performance is related to the items: automobiles; iron ore; metallic structures and screens made of iron and steel. Among those items which presented negative results, metallurgy (-4.4%) was the most relevant one, with bobbins or stainless steel plates, carbon steel square bars and carbon steel plates, as the main highlights.

Espírito Santo

In May 2005, the industrial indicators of Espírito Santo, still presented positive rates. In comparison with the same month last year, production grew by 2.2%, whereas the rates accumulated in the year and in the last 13 months increased 4.2% and 5.7%, respectively.

The expansion of 2.2% is inferior to the results of March (6.7%) and April (5.0%). Production grew in three of the five subsectors surveyed, and the major contributor to the overall rate was metallurgy, due to the production of steel and iron ingots and blocks. The contributions of non-metallic minerals (8.8%) and cellulose and paper (3.0%) were also important, and reflected the increment of cement and of wood chemical paste (cellulose). Among the subsectors presenting negative results, the main highlight was food products and beverages (13.1%), due to the reduced production of candy bars.

The indicator accumulated in the period January-May increased 4.2% over the same period last year; there was expansion in all the five subsectors surveyed. The main contributors to the formation of the overall rate of industry came from cellulose and paper (5.9%), metallurgy (3.9%) and food products and drinks (7.4%). Concerning these activities, the highlights were wood chemical paste (cellulose), steel ingots, blocks and square bars, and candy bars, respectively.

Rio de Janeiro

The industrial production in Rio de Janeiro grew by 1.5% in May, in relation to May , and has remained positive since March. The industry in the state grew by 1.9%, concerning the rate accumulated in the year, and by 2.8%, considering the last twelve months.

In comparison with the same month last year, Rio de Janeiro industry expanded, as a consequence of the positive performance of quarrying industry (28.5%), the biggest change since November 2002 in this type of comparison. In this activity, which had the third consecutive positive result, the main highlight was the field of petroleum and natural gas. Manufacturing industry decreased again (-3.5%), after two months of positive rates. The major contributors, in this case, were pharmaceutical industry (-28.3%) and editing and printing (-19.0%). On the other hand, among the six industrial subsectors with expanded production, the main ones are: non-metallic minerals (36.1%) and automotive vehicles (17.3%), influenced, to a great extent, by the production of granite and trucks, respectively.

Considering the indicator accumulated between January and May, industry grew by 1.9%, due to the expansion observed in eight of the thirteen subsectors surveyed. The positive performance of quarrying industry (11.2%), based on extraction of petroleum and natural gas, contributed a lot to the overall rate. On the other hand, manufacturing industry fell (-0.1%), with metallurgy (-11.1%),editing and printing (-14.3%) and rubber and plastic (-24.3%), accounted for the major negative impacts, influenced, above all, by the reduction of the production of iron pipes and profiles and tin plates and of tires, respectively. Among the industrial subsectors presenting the highest rates, the most relevant ones are: non-metallic minerals (39.7%) and automotive vehicles (17.5%)influenced by the increment in the production of granite and automobiles, to external markets.

São Paulo

In May, all the industrial indicators of the São Paulo industry were positive, with increase of 6.3% in comparison with the same month last year, 5,8% accumulated in the year, and 10.1% in the last twelve months.

The increase of 6.3% of the monthly index, the nineteenth consecutive positive result, with fourteen of the twenty subsectors surveyed contributing positively to the overall rate. The main highlights, in terms of participation, were editing and printing (26.8%), machinery and equipment (12.9%) and petroleum refinement and alcohol production (11.1%). Magazines; printed material; equipment elevators/ roller bearings and merchandise transporters; gasoline and alcohol were the items which most influenced the expansion of these segments. In terms of negative performances, there was reduction of production of six subsectors in relation to May 2004, especially electronic material and communication equipment (-4.9%), textiles (-4.1%) and non-metallic minerals (-3.0%). In these subsectors, the decreases were observed in: radios, telephony appliances; synthetic and cotton fibers; concrete and cement.

The indicator accumulated in the month, with expansion of 5.8% was slightly superior to that of April (5.6%). Seventeen subsectors exerted a positive influence on this result, being the main ones: pharmaceutical industry (26.1%), machinery and equipment (12.7%) and editing and printing (17.%). The increments in medicine; equipment elevators/ roller bearings and merchandise transporters; magazines and printed material were the main contributors to the performance of thses subsectors. On the other hand, three activities influenced negatively the overall rate: electronic material and communication equipment (-9.8%), petroleum refinement and alcohol production and (-4.6%) and textiles (-4.7%).

Paraná

In May 2005, the industrial production in Paraná kept presenting positive results in the three periods considered: 13.5% in the month, 6.5% accumulated in the year and 9.5% accumulated in the last twelve months.

The expansion of 13.5% is a consequence, mainly, of the positive performance of eleven of the fourteen industrial subsectors surveyed. The growth of the general industry is due, partially, to the expressive increase of petroleum refinement ands alcohol production (87.8%), due to the interruption of production of an important company of this segment in May 2004; and of automotive vehicles (30.5%), due to the production of automobiles. The other positive contributions were those of editing and printing (42.6%) and food products (5.6%), with the items: books and newspapers; crystallized sugar and soybeans oil. These activities accounted, together, for 13.9 percentage point of the overall rate. Among the three items with decrease of production, it is worth mentioning: chemical products (-40.7%), influenced by the decrease of the production of fertilizers (a consequence of the difficult conditions for agribusiness); and wood (-7.7%), due to plywood.

In terms of the indicator accumulated from January to May, production grew by 6.5%, with positive results in 9 of the fourteen subsectors surveyed. The automotive vehicle industry, which expanded 37.6%, was the main positive contribution to general industry, because, above all, of the production of automobiles and trucks. The god performance of this subsector boa performance reflected the good results of exports. It is also worth mentioning the performance of editing and printing (34.2%) and petroleum refinement and alcohol production (6.2%). In terms of negative impacts, can be mentioned chemical products (-30.9%) and wooden products (-5.8%).

Santa Catarina

The industry of Santa Catarina presented, in May, expansion of 3.5% in comparison with the same month last year, keeping the sequence of positive results started in February 2004. Both of the indicators for longer periods were positive: 7.3% accumulated in the year and 11.6% in the last four months.

The increase of 3.5% in relation to the same month in the previous year, reflects the growth of seven of the eleven industrial subsectors surveyed. Automotive vehicles (38.2%), textiles (11.8%) and food products (4.5%) were the main positive impacts on the formation of the overall index. In these subsectors, the most relevant items were buses and trucks bodies; bath, face and hand towels; and swine meat, respectively. On the other hand, machinery and equipment (-4.9%) and apparel (-8.4%) were the main negative contributions. That van be attributed to the reduced production of refrigerators or freezers and of cotton T-shirts, respectively.

The industrial activity in Santa Catarina, concerning the monthly indicator in the year, expanded 7.3%, and remained at a growth level similar to the national average (4.7%). There was predominance of positive results in nine of the eleven subsectors surveyed. The highlight was automotive vehicles (100.0%), still under the impact of rates registered in the first months of the year, which had resulted from the production of bodies for trucks and buses .Other important contributions were those of food products (6.6%) and textiles (9.2%), due to the increase of external demand for the items: frozen swine meat, bath, face and hand towels, respectively. The negative contributions were those of electric machines, material and appliances (-8.5%), together with apparel (-4.9%), which are the only subsectors presenting negative results. They were influenced by the reduction of the production of electric motors and male slacks, respectively.

Rio Grande do Sul

In May, the industry in Rio Grande do Sul had its fifth consecutive result (-2.4%), in comparison with the same month in the previous year. Concerning the indicators for longer periods, the rate accumulated in the year also decreased (-3.4%), whereas in the last twelve months it increased by 3.0%.

According to the monthly indicator, the industrial production in the state decreased 2.4% due to the results of eight of the fourteen subsectors surveyed. The main negative results came from machinery and equipment (-28.4%), other chemical products (-8.9%)and metallic products (-11.8%); there was reduction of the production of the following items: harvesting machines, sowing machines; low-density polyethylene, and metal parts and pieces. On the other hand, the major impacts in general were: petroleum refinement and alcohol production (19.7%), with naphthas for chemical products related to petroleum industry as the highlight; and footwear and leather articles (8.8%), of which the highlights were plastic and leather shoes.

The decrease of the index accumulated in the period January-March (-3.4%), reflected the negative performance of nine of the fourteen subsectors surveyed. The activities which most contributed to this result were: machinery and equipment (-21.6%), tobacco (-9.1%) and other chemical products (-4.6%). In these subsectors, the main items were, respectively, : harvesting machines, sowing machines, processed tobacco and low-density polyethylene. The industries of food products (5.5%) and footwear and leather articles (5.3%) were the main positive contributions. The production of these subsectors increased, especially, for the items: powdered milk and leather and plastic shoes, respectively.

Goiás

In May, the national production of Goiás grew for the third consecutive month in comparison with the same month in the previous year (1.4%), a significant decrease in relation to April (18.4%). This deceleration reflects, principally, the period between harvests of flour and "pellets" of the subsector of food products and drinks, the most representative one in the state. The indicator accumulated in the first five months of the year and the rate accumulated in the last twelve months also presented expansion, respectively, of 6.1% and 8.8%.

The growth of 1.4% of the monthly indicator can be explained, above all, by the increase observed in three of the five subsectors surveyed. The main highlights were quarrying industry (19.9%), influenced by the good performance of fiber or powdered asbestos, and of metallurgy (14.8%). The latter were influenced, mainly, by the items iron-nickel and iron niobium. The most relevant negative contribution was that of chemical products (-13.6%) due, above all, to the reduced production of fertilizers.

The indicator accumulated in the year presented expansion of 6.1%, a consequence of the growth of four among five activities surveyed. The highlight was the positive performance of food products and beverages (7.8%), due to the production of flour and "pellets" of soybeans, of beer and draft beer and of frozen beef. In second place, are quarrying industry (10.6%) and metallurgy (11.7%), reflecting the positive behavior of the items: fiber or powdered asbestos; iron-nickel; iron niobium. The only subsector which contributed negatively was chemical products (-9.4%), due to the reduced production of fertilizers.