Increase in relation to November is already seasonally adjusted. It was the highest figure, in the comparison with the previous month, since October 2003. In relation to December 2004, there was increase of 3.2%. The indicator accumulated in 2005 (January-December) was 3.1%. The last quarter of the year also presented positive results, in relation to the immediately previous quarter (1.0% in the seasonally adjusted series), as well as in relation to the fourth quarter of 2004 (1.4%). The industrial performance in December was especially influenced by the dynamism of the sectors producing of consumer goods (durable and non-durable).

The increase of 2.3% in the production from November to December had a generalized profile - reaching 21 among 23 groups that have seasonally adjusted series and all the categories of use. It was especially significant for durable consumer goods (17.6%) – a result considerably above the ones observed for capital goods (5.8%) and for semi-durable and non-durable consumer goods (3.5%). The sector of capital goods accumulated expansion of 11.6% between October and December 2005; while the segment of semi-durable and non-durable consumer goods increased by 6.3% between September and December. In this same period, the total of industry increased by 4.0%.

The category of intermediate goods (1.2%) was the only one with a rate below the overall average of the industry from November to December. In the analysis by industrial groups, the highlights were electronic material and communication equipment (13.8%), automotive vehicles (4.7%) and pharmaceuticals (8.6%).

Analyzing the results of the original series (without seasonal adjustment, it can be observed that the reduction of –6.5% for the total of industry between November and December was the lowest in the last ten years. In the period 1995-2005, the average fall observed during these months was –10.9%. With the favorable result of December, the series of seasonally adjusted series reached in that month a record level for the total of industry, 0.9% above the maximum previous result, in June 2005. The production in December was also the biggest of the series for the segment of capital goods (4.5% above the result of June 2005).

The performance in December indicated a recovery of the quarterly moving average of the industrial production in the end of 2005, after a relative stability since September. For the total of industry, there was growth of 1.3% in December, in relation to November. In the same comparison, the four categories of use also had a positive trend: durable consumer goods (6.3%), capital goods and semi-durable and non-durable consumer goods (both with 2.1%) and intermediate goods (0.5%).

In the comparison December 05/ December 04, there was expansion in 18 among 27 surveyed groups and in the four categories of use. The performances of pharmaceuticals (26.4%), machines and equipment, electric materials and equipment (28.5%), mining and quarrying (9.5%), automotive vehicles (5.6%) and edition and printing (8.2%) were determinant. The main negative influences came from petroleum refining and alcohol production (-5.2%) and other chemicals (-3.5%). Among the categories of use, the highest rate came from durable consumer goods (14.1%), influenced mainly by the value of 20.1% of increase in automobiles and of 43.5% in mobile telephones. The production of household appliances, by its way, fell by –7.3%.

The highlight to the productive sectors of final goods in December reinforces the idea that the trend of adjustment in the level of stocks in the previous months led to a reaction in the productive rhythm in the last month of 2005. Still concerning the comparison December 05/ December 04, the result of capital goods (7.6%) also surpassed the industrial average. It was followed by semi-durable and non-durable consumer goods (3.5%), while intermediate goods (0.3%) repeated almost the same figure of December 2004.

In the comparison with the same quarter of the previous year, the indexes confirm deceleration in the rhythm of industrial activity in the previous year. After the expansion of 3.9% and 6.1% in the first two quarters of 2005, the overall rate was 1.4% in the period July-September, a result maintained in the last quarter. The deceleration was more intense among durable consumer goods: growth of 11.9% in the first quarter, 21.0% in the second quarter, 8.8% in the third and 4.9% in the fourth. The sector of intermediate goods registered rates of 1.6%, 3.2%, -0.7% and –0.2%, respectively. The production of semi-durable and non-durable consumer goods also decelerated, although sustaining rates above the overall average: 5.4% in the first quarter, 7.8% in the second, 3.5% in the third and 2.4% in the fourth. Only the production of capital goods followed a different trend: it increased by 2.5% in the first and 5.1% in the second quarter, reduced the rhythm in the third quarter (2.5%), but accelerated in the last one, increasing to a rate of 4.4%.

Vehicles brought the biggest result to the accumulated index of the year

The accumulated result of the industrial production for 2005 (3.1%) showed, mainly, the expansion of 17 activities. The activity automotive vehicles, with increase of 6.8%, was the main result in the overall performance. In second place were: mining and quarrying (10.2%), edition and printing (11.6%), electronic material and communication equipment (14.2%) and pharmaceuticals (14.6%). Among the ten groups with fall in production, the one that most influenced the overall rate was metallurgy (-2.0%), followed by other chemical products (-1.3%) and machines and equipment (-1.3%).

In the categories of use, the major annual expansion was verified in durable consumer goods (11.4%), as a consequence of the increase in the production of automobiles (13.1%), mobile telephones (43.9%) and T.V. sets (23.1%). The increase in the supply of credit and a major stability of the labor market stimulated the domestic sales of durable goods. Regarding the case of automobiles, besides the increase of 21.9% in the exported units, according to the National Association of the Manufacturers of Automotive Vehicles (ANFAVEA), the launching of two-fuel vehicles stimulated the domestic sales which increased by 8.1%.

The segment of semi-durable and non-durable consumer goods, with increase of 4.7%, had results higher than the average of the industry, which has not occurred since 1999. The category was the only one to keep the rhythm observed in the end of 2004 (4.0%). The expansion is probably related to a positive trend of the overall wages and to the declining of prices, mainly of food products. The highlight was the sub sector of other non-durable goods. Its increment of 8.8% was related to the performance of the industries of pharmaceuticals and of edition and printing; food products and elaborated beverages for domestic consumption (2.7%), in which stood out soft drinks and beers; and fuels (7.1%), due to the increase in the production of gasoline. The production of the sub sector of semi-durable (basically ready-made clothing and footwear) was 1.5% lower than in 2004.

The segment of capital goods also increased above the average (3.6%). The sub sectors that stood out were the ones associated to infrastructure: machines and construction equipment (32.1%), machines and equipment for electricity (28.5%) and capital goods for transportation (6.7%). Agricultural capital goods (-37.8%) and capital gods for industrial use (-0.4%) brought the negative results.

Still in the comparison with 2004, the production of the sector of intermediate goods had a moderate growth (1.0%). The main negative impacts came from fuels and elaborated lubricants (-1.6%) and elaborated industrial inputs (-0.3%). The result of the category was not lower due to the performances of basic industrial inputs (6.7%) and fuels and basic lubricants (12.2%). The index of inputs for construction (1.3%) closed slightly above the total of the category.

The evolution of the industrial activity in 2005 showed an increase of 1.0% in the last quarter, after a reduction of -0.4% between the second and third quarters. This trend was influenced, mainly, by the performance of semi-durable and non-durable consumer goods (rates of –0.3% and 0.8% respectively) and capital goods (1.1% and 2.2%). In these same periods, the index for durable consumer goods changed from –3.9% to 0.1%, and for intermediate goods from –0.7% to 0.3%.