Industry closed 2005 with growth in 12 among 14 surveyed areas. The highest rate was observed in Amazonas (12.1%). Following it were Minas Gerais (6.3%), Bahia (4.1%), São Paulo and Pará (both with 3.8%) and Goiás (3.2%). These localities are the ones that grew above the national average (3.1%). Pernambuco (3.0%), Northeast Region (2.4%), Rio de Janeiro (2.0%), Espírito Santo (1.4%), Paraná (0.8%) and Santa Catarina (0.1%) also had positive rates, although below the national average, while Ceará (-1.6%) and Rio Grande do Sul (-3.5%) had negative results.

In December 2005, in the comparison with the same month in 2004, the industrial production increased in eight among 14 surveyed localities. Above the national index (3.2%) were: Bahia (10.0%), Pernambuco (8.8%), Minas Gerais (5.7%), Pará (4.0%), São Paulo (3.8%), Northeast Region (3.7%) and Rio de Janeiro (3.5%). Goiás (3.1%) also had a positive result, although slightly below the average of the Brazilian industry. The other regions recorded negative rates: Rio Grande do Sul (-0.3%), Paraná (-1.6%), Espírito Santo (-3.0%), Santa Catarina (-3.7%), Amazonas (-4.4%) and Ceará (-6.6%).Deceleration in the rhythm of growth of 11 localities was observed from the first to the second semester of the previous year, similarly to the trend recorded by the national industry. The most pronounced trends of reduction came from Amazonas, which changed from 20.2% in the period January- June to 5.1% in the second semester, Ceará (from 6.1% to –7.6%), Paraná (8.0% to –5.3%) and Santa Catarina (from 6.5% to -5.5%).

Amazonas

In December 2005, the industrial production of Amazonas fell by 4.4%, in comparison with the same month of the previous year, registering the second consecutive negative result in this type of comparison. In the last quarter of the year it increased by 1.9%, indicating an evident trend of deceleration, since in the third quarter, the production increased by 8.5% - both comparisons with the same period of the previous year. However, an increase of 12.1% in the accumulated indicator of the year was observed. This was the only surveyed locality which had a two-digit rate in this type of comparison.

Seven among 11 surveyed activities contributed negatively to the formation of the monthly indicator of industrial production (-4.4%). The sectors that most influenced the overall index were food products and beverages (-16.2%), petroleum refining and alcohol production (-30.4%) and machines and equipment (-31.0%). On the other hand, the main positive impacts came from other transportation equipment (22.4%) and electronic material and communication equipment (6.7%).

In the quarterly analysis, the increase of 1.9% in the fourth quarter of 2005, in relation to the same period of the previous year, was considerably below the result observed in the third quarter (8.5%). The third quarter had already presented significant fall in relation to the second quarter (25.6%). Hence, it can be pointed out that the growth of industrial production of Amazonas, during 2005, was concentrated in the first two quarters of the year, with expansion of 20.2%, while in the second semester the figure was 5.1%. The trend of deceleration among the last two quarters of the year was observed in six among 11 surveyed activities, especially electronic material and communication equipment, which changed from 18.5% to 0.8%.

The accumulated production of the industry of Amazonas closed 2005 with growth of 12.1%, in relation to the same period of the previous year, with eight among 11 surveyed activities contributing positively to the overall indicator. Electronic material and communication equipment (23.9%) was the main positive influence on the formation of the overall index. It can also be pointed out the performance of food products and beverages (9.6%) and other transportation equipment (10.3%). Regarding the groups that had negative results, rubber and plastic (-20.8%) and petroleum refining and alcohol production (-7.5%) were the highlights.

Pará

The industry of Pará closed 2005 with expansion of 3.8%. In the comparison with the same month of the previous year it increased 4.0% and in the last quarter of the year, the increase was 3.9%.

In December, the result of the general industry was significantly influenced by the performance of mining and quarrying (7.4%). Manufacturing increased in a more moderate rhythm (1.0%) and four among five industrial groups had positive rates, especially basic metallurgy (4.2%) and cellulose and paper (8.2%). Among the ones with negative results, the biggest impact came from wood (-8.9%).

The last quarter of the year also increased (3.9%), in relation to the same period of the previous year. The rhythm of growth increased in relation to the result of the third quarter (1.2%). However, it is worth observing that in the two first quarters of the year the rates were the highest (4.6% in January-March and 5.8% in the second quarter), accumulating in this period expansion of 5.2%. In the second semester, the increase of 2.6% was supported by the favorable performance of mining and quarrying (7.4%), since manufacturing fell by 1.4%.

The production of 2005 increased by 3.8% in relation to the same period of the previous year, with mining and quarrying (9.8%) answering for the main positive impact, while manufacturing fell by 0.7%. In the former, the positive result was sustained mainly by exports of iron ore, and in the latter, the main negative pressures came from wood (-7.8%) and non-metallic minerals (-7.1%).

Northeast

In December 2005, the industry of the Northeast recorded growth of 3.7%, in comparison with same month of previous year. The indicators for longer periods also showed positive rates: 0.6% in the fourth quarter of the year and 2.4% in the accumulated index of the year.

In the monthly indicator (3.7%), expansion in six among 11 surveyed activities was observed, with highlight to cellulose and paper (85.6%). Following it, stood out chemical products (8.4%) and basic metallurgy (8.5%). On the other hand, the major negative influences came from textiles (-9.9%) and footwear and leather articles (-10.2%).

On a quarterly basis, the industry of the Northeast had a declining trend from the first to the third quarter of 2005. The productive rhythm was maintained in the fourth quarter, once the third and the fourth indicated the same positive result (0.6%). Production increased in seven among 12 activities surveyed, especially cellulose and paper, which changed from 9.1% to 53.8%; food products and beverages, from –1.3% to 2.3%, and metallurgy basic (from 0.6% to 8.1%). On the other hand, the major deceleration came from petroleum refining and alcohol production, which changed from an increase of 20.9% in the third quarter, to fall of 3.7% in the last quarter.

In the accumulated indicator January-December, the industry of Northeast increased by 2.4%, due mainly, to the positive influence of seven among 11 surveyed activities. Food products and beverages (3.8%), non-metallic minerals (14.0%) and cellulose and paper (18.2%) brought the main positive impacts. On the other hand, the main negative influences came from textiles (-3.9%) and mining and quarrying (-3.7%).

Ceará

In December 2005, the industrial production of Ceará had negative rates in the main indicators: -6.6% in comparison with the same month of the previous year, -7.9% in the last quarter of the year and –1.6% in the accumulated indicator of the year.

Industry, for the sixth consecutive month, indicated fall in the monthly indicator. To the composition of the rate of –6.6%, contributed negatively five among 10 surveyed sectors. Petroleum refining and alcohol production (-47.7%) brought the main negative impact. The negative behavior of textiles (-13.8%) and footwear and leather articles (-13.8%) can also be mentioned. Among the sectors that indicated positive results, stood out chemical products (21.3%) and metal products (18.2%).

In the quarterly analysis, the industry of the state, after growing by 5.2% in the first quarter and by 6.9% in the second quarter, showed a significant loss of dynamism in the second semester (-7.6%), once it indicated fall in the third (-7.2%) as well as in the fourth quarter (-7.9%). In the last quarter of the year, among the six activities that recorded fall, the main negative results were textiles (-19.1%), footwear and leather articles (-18.9%) and food products and beverages (-5.5%).

In the accumulated indicator of the year, compared to the same period of the previous year, the industrial production of the state fell by 1.6%, with decrease in four out of 10 investigated activities. The biggest negative influences came from footwear and leather articles (-8.4%), textiles (-5.1%) and food products and beverages (-3.3%). On the other hand, non-metallic minerals (21.0%) and electric machines, equipment and material (21.7%) brought the main positive contributions.

Pernambuco

The industry of Pernambuco, in December 2005, recorded increase of 8.8% in relation to the same month of the previous year. The indicators for longer periods also had positive rates: 6.3% in the last quarter of the year and 3.0% in the accumulated in the year.

The industry of the state, for the second consecutive month, increased in the monthly indicator, with positive results in six among 11 surveyed industrial activities. The main positive influence for the formation of the rate came from food products and beverages (14.6%). It can also be mentioned, although in a lower scale, the impact of electric machines, equipment and material (27.8%) and of non-metallic minerals (17.8%). On the other hand, the major negative contributions were observed in footwear and leather articles (-35.4%) and basic metallurgy (-4.0%).

In the quarterly analysis, the industry of the state indicated growth of 3.5% in the first quarter, null growth in the second (0.0%), small expansion in the third (1.0%) and accelerated growth in the fourth quarter (6.3%). The ascending trend observed from the third to the fourth quarter showed, mainly, the favorable performance of food products and beverages, which changed from a slight fall of 0.1% to an increase of 10.0%, and of basic metallurgy (from –5.9% to 5.8%).

In the accumulated indicator of the year, which increased by 3.0%, compared to same period of the previous year, there was increase in six among 11 industrial investigated sectors. The main positive influences came from food products and beverages (4.5%) and of electric machines, equipment and material (20.0%). On the other hand, the major negative impacts were observed in metal products (-11.9%) and textiles (-19.3%).

Bahia

The industrial production of Bahia, in December 2005, expanded by 10.0% in comparison to the same month of the previous year. The indicators for longer periods were also positive and reached expansion of 4.1%, in the last quarter as well as in the accumulated indicator of the year.

In terms of the monthly indicator, eight out of nine surveyed industrial activities had positive results. The main contribution came from cellulose and paper (113.4%). It can also be mentioned, although in a lower scale, the favorable performance of chemical products (5.0%) and basic metallurgy (15.7%). On the opposite hand, rubber and plastic (-1.7%) was the only activity with negative result.

On a quarterly basis, the industrial production of Bahia had positive rates during 2005. In the first quarter it increased by 3.5%, 1.2% in the second, 7.6% in the third (the best result in the year) and 4.1% in the fourth. The loss of dynamism in the rhythm of expansion observed from the third to the fourth quarter showed, mainly, a strong fall indicated in petroleum refining and alcohol production, which changed from an increase of 26.0% to a decrease of –3.3%.

In the accumulated indicator of the year, compared to a same period of the previous year, there was growth in seven among nine investigated industrial sectors. The most relevant positive impacts were observed in cellulose and paper (21.3%) and in food products and beverages (8.0%). On the other hand, the only two negative results came from mining and quarrying (-2.8%) and chemical products (-0.3%).

Minas Gerais

The industrial production of Minas Gerais showed, in December, expansion of 5.7% in relation to the same month in 2004. This was the twenty-ninth consecutive positive result in this type of comparison. The quarterly indicator had a slight reduction in the rhythm of expansion from the third (5.2%) to the fourth quarter (4.9%) of 2005. Finally, the accumulated indicator of the year recorded growth of 6.3%, above the result observed for the average of the country (3.1%).

The monthly indicator increased by 5.7% compared to the same month of the previous year, based on the growth recorded in the manufacturing industry (4.7%) as well as in mining and quarrying (12.8%). In this last one, which brought the main positive contribution for the composition of the overall index, stood out the increase of iron ore extraction. In the manufacturing industry, nine among 12 activities increased, especially basic metallurgy (7.5%), non-metallic minerals (16.3%) and metal products (19.7%). On the other hand, stood out the negative influence of petroleum refining and alcohol production (-12.4%) and chemical products (-8.7%).

In the quarterly analysis, the industry of the state, increased by 4.9% in the fourth quarter of 2005 in relation to the same period of the previous year, keeping a sequence of 14 quarters with positive results. The quarterly evolution during 2005 showed more significant rates of expansion in the first two quarters (7.0% in January-March and 8.6% in April-June) than in the last two quarters. This contributed to accumulate growth of 7.8% in the first semester against 5.0% on the second semester of 2005, both compared to same period of the previous year.

The accumulated production of the industry of the state in 2005 (6.3%) in comparison with the same period of the previous year, had the best result in the last five years, keeping the productive rhythm recorded in 2004 (6.0%). This increase was supported mainly, by the expansion of mining and quarrying (12.7%), in which stood out the increase of iron ore. The manufacturing industry (5.3%) also increased the production, with positive results in nine among 12 surveyed groups. The main positive contributions for the overall index were recorded in automotive vehicles (10.8%), metal products (31.0%) and food products (6.7%), that kept positive rates during the whole year. On the other hand, basic metallurgy (-2.0%) stood out as the biggest negative contribution.

Espírito Santo

In December 2005, the industrial production of Espírito Santo fell by 3.0%, after four consecutive months of positive rates. In the indicators for longer comparisons positive rates were also observed in the last quarter of the year (0.6%) and in the accumulated index of the year (1.4%).

The fall by 3.0% observed in the overall industry in December 2005, in comparison with the same month of 2004, was influenced, mainly, by the decrease in cellulose and paper (-9.1%). Also it may be pointed out the negative impacts, although in a lower scale, of mining and quarrying (-5.8%) and food products and beverages (-7.8%). On the other hand, non-metallic minerals (15.0%) brought the main positive impact.

On a quarterly basis, it could be observed in the two first quarters of the year, January-March (4.7%) and April-June (1.7%), the production expanded in more accelerated rhythm, while in the last two indicated loss of dynamism, once it accumulated fall of 0.3%. The slight improvement in the rhythm of production from the third (-1.2%) to the fourth quarter (0.6%) can be related to the better performance of basic metallurgy, which changed from a fall of 7.2% to an expansion of 4.9%.

The accumulated indicator of 2005, compared to a similar period of the previous year, increased by 1.4% with the major part (four) of the five surveyed sectors increasing the production. The main positive contributions came from non-metallic minerals (6.5%), cellulose and paper (2.0%) and mining and quarrying (1.0%). The only activity that had negative result was basic metallurgy (-0.3%).

Rio de Janeiro

The industrial sector of Rio de Janeiro remained, in December 2005, showing expansion of 3.5% in the production in the comparison with the same month of the previous year, a performance observed since August of the previous year. In the other indicators, the results were also positive: 3.4% in the last quarter of the year and 2.0% in the accumulated of the year.

In the comparison with the same month of the previous year, the industrial production of the state increased due to the favorable performance of mining and quarrying (17.8%). In this activity, which had the tenth consecutive positive result, the main highlight came from petroleum extraction and natural gas. The manufacturing industry, for the second consecutive month, increased by 0.4%, although with rates very close to zero. In this group, food products (15.7%), edition and printing (15.1%) and pharmaceuticals (10.8%), answered for the main positive impacts. Among the seven groups that reduced their production, rubber and plastic, with fall of 38.6%, stood out as the major negative influence. It is also worth mentioning the negative contributions from perfumery, soaps and cleaning products (-23.2%) and petroleum refining and alcohol production (-2.8%).

In the quarterly analysis it could be observed that the industry of the state, grew 3.4%, maintaining positive results for eight consecutive quarters. An ascending trend in the productive rhythm was observed in the fourth quarter of this year, since it recorded 0.9% in the first quarter, 1.7% in the second and 2.1% in the third, all the comparisons with same period of the previous year. The gain of dynamism from the third to the fourth quarter was a consequence of the manufacturing industry, which changed from –0.6% to 0.4%, as well as mining and quarrying, which changed from 15.5% to 18.1%, due to the good performance of petroleum extraction and natural gas.

In the indicator for the end of the year, the industrial production of Rio de Janeiro closed 2005 with expansion of 2.0%, compared to same period of the previous year, showing results very near to the ones obtained in 2004 (2.4%), although below the national average performance (3.1%). Mining and quarrying (15.0%), best result since 2001, due to the good performance of petroleum extraction and natural gas, was the main positive influence in the overall result. Manufacturing industry fell by 0.6%, due to the adverse performance of seven among 12 industrial sectors investigated, especially the reduction observed in basic metallurgy (-7.2%) and rubber and plastic (-25.8%). Among the sector that increased the production, non-metallic minerals (19.9%), automotive vehicles (15.0%) and food products (10.4%) brought the biggest impacts.

São Paulo

The industrial production of São Paulo increased by 3.8% in December 2005, in the comparison with the same month of the previous year. This was the third positive consecutive result in this type of comparison. With this, the quarterly indicator recorded growth of 1.7% in the fourth quarter, slightly above the one observed in the third (1.4%). In the accumulated indicator of the year, there was growth of 3.8%, above the one observed for the average of the Country (3.1%).

The rise of 3.8% in the monthly indicator of the state showed mainly, the positive result in 13 among 20 surveyed activities. The main highlights were pharmaceuticals (30.3%), edition and printing (14.0%), machines and equipment (11.0%) and automotive vehicles (6.9%). On the other hand, the major negative results were observed in food products (-5.2%), metal products (-9.1%) and petroleum refining and alcohol production (-4.7%).

In the fourth quarter of 2005, there was increase of 1.7% in the industrial production of the state, in the comparison with the same period of the previous year, showing a slight acceleration in the rhythm of expansion, once in the third quarter this indicator reached expansion of 1.4%. This trend was observed in 11 among 20 surveyed activities. It can be pointed out that during 2005, in the analysis by quarter it could be observed that the major rates were observed in the first and second quarters, in which a growth of 6.3% was accumulated.

The accumulated indicator in 2005 for the industry of the state increased by 3.8%, in relation to the same period of the previous year, a result considerably below the one recorded in 2004 (11.8%). Thirteen among 20 surveyed activities had positive rates, especially pharmaceuticals (26.0%), edition and printing (18.0%), electric machines, equipment and material (14,.%) and machines and equipment (6.2%). Among the groups which had negative results, stood out electronic material and communication equipment (-6.0%) and textiles (-7.7%).

Paraná

In December 2005, the industry of Paraná fell by 1.6% in the comparison with the same month of the previous year. Also negative was the result of the last quarter of the year (-6.3%), while the accumulated indicator January-December had a slight increase (0.8%).

The negative result observed in the monthly indicator (-1.6%) was determined mainly by the decrease in seven among 14 surveyed groups, with the major negative impacts coming from machines and equipment (-22.4%), petroleum refining and alcohol production (-10.9%) and wood (-15.8%). On the other hand, electric machines, equipment and material (66.5%) and cellulose and paper (12.0%) brought the most relevant positive influences.

In a quarterly analysis, the industry of the state, while falling 6.3%, had a second consecutive quarter with negative result, once it had fallen (-4.3%) in the third quarter. This trend of acceleration in the rhythm of decrease was observed in six among 14 surveyed activities, especially automotive vehicles, which changed from 13.7% to 5.0%, and petroleum refining and alcohol production (from 4.0% to –6.8%).

The accumulated indicator for the end of 2005, compared to same period of the previous year, showed increase of 0.8%, due, mainly, to the performance of automotive vehicles (21.1%).It can also be pointed out the favorable performances of petroleum refining and alcohol production (9.6%) and cellulose and paper (7.7%). On the other hand, the major negative impacts in the overall result were observed in food products (-5.8%) and machines and equipment (-11.1%).

Santa Catarina

The industrial production of Santa Catarina, in December 2005, fell by 3.7% in the comparison with the same month of the previous year, stressing the fall registered in last November (-2.2%). The accumulated indicator in 2005 was near zero (0.1%), a result considerably different than the one recorded in the previous year (11.4%). The indicator of the last quarter of the year fell by 3.6%.

In the decrease of 3.7% obtained in the comparison with 2004 (sixth consecutive negative result), it could be observed a negative performance in six among 11 surveyed industrial groups. The index was influenced mainly, by the decrease observed in machines and equipment (-21.2%). It can also be pointed out the negative impacts of food products (-4.7%) and wood (-12.5%). Among the five activities which increased the production, the main contributions came from automotive vehicles (15.3%), rubber and plastic (11.0%) and electric machines, equipment and material (18.0%) .

The evolution of the indexes with quarterly basis showed that the industrial activity of the state maintained negative rates in the last two quarters of 2005. It can be pointed out that the first semester grew in the two quarters, where it accumulated expansion of 6.5%. The last quarter of 2005 fell by 3.6%, a result less negative than the one of the third quarter (-7.4%). This trend of deceleration in the rhythm of decrease was stimulated, mainly, by machines and equipment, which changed from –27.6% in the period July-September to –15.9% in the last quarter of the previous year, and electric machines, equipment and material (from –23.9% to –3.3%).

In the accumulated indicator of the year, compared to same period of the previous year, a slight positive result of 0.1% was observed considerably below the national average (3.1%). In the overall result, eight among 11 surveyed industrial groups contributed positively, being the most significant automotive vehicles (39.6%). Other relevant positive contributions came from textiles (5.1%), food products (2.2%) and cellulose and paper (6.4%). The three only negative results were observed in machines and equipment (-12.9%); apparel and electric machines, equipment and material, both with fall of 11.9%.

Rio Grande do Sul

The industry of Rio Grande do Sul, in December 2005, recorded fall in all the indicators: -0.3% in the comparison with the same month of the previous year, -3.8% in the last quarter of the year and –3.5% in the accumulated index of the year.

The slight negative change (-0.3%) in the monthly indicator was due, mainly, to the adverse performance observed in seven among 14 surveyed segments. The main negative impacts were observed in machines and equipment (-16.5%), footwear and leather articles (-7.2%) and furniture (-23.0%). On the other hand, the most relevant positive contributions for the overall result came from petroleum refining and alcohol production (22.0%) and food products (5.7%).

The evolution of the indexes on a quarterly basis showed that the industrial activity of the state continued presenting negative rates during 2005. From the third to the fourth quarter, it indicated a slight deceleration in the rhythm of fall, changing from –4.1% to –3.8%. This trend was observed in seven among 14 surveyed groups, especially food products, which changed from -2.4% to 8.4%, and basic metallurgy (-8.8% to 0.9%).

In the end of 2005, 11 among 14 surveyed groups indicated decrease in the accumulated indicator January-December (-3.5%). The major negative impacts were observed in machines and equipment (-19.1%), footwear and leather articles (-5.2%) and other chemical products (-5.8%). On the other hand, among the groups with positive influences, stood out food products (4.0%) and petroleum refining and alcohol production (6.3%).

Goiás

The industry of Goiás, in December 2005, increased (3.1%), compared to same month of the previous year, after three consecutive months of fall. In the accumulated indicator January-December, the performance was also positive (3.2%), while in the last quarter of the year, compared to same period of the previous year, it fell by 1.5%.

In the comparison with the same month of the previous year, the industry of the state increased (3.1%) supported by the favorable performance of the manufacturing industry (8.1%), once mining and quarrying fell (-44.0%). In the manufacturing industry, food products and beverages, growing 9.8%, brought the main positive influence to the overall average of the industry. Among the activities that reduced the production, stood out chemical products (-15.9%).

The evolution of the indexes on a quarterly basis showed that the industrial activity in Goiás had positive rates in the three first quarters of 2005: 3.8% in the period January-March, 9.8% in the second quarter and 1.7% in the third. With fall of 1.5% in the last quarter of the year, compared to the same period of the previous year, it could be observed an evident deceleration in the rhythm of expansion of the industry from the first (6.9%) to the second semester (0.1%). This trend was observed in four among five surveyed groups, with mining and quarrying having the major losses, changing from 10.3% to -20.8%.

The indicator accumulated from January to December, compared to same period of 2004, indicated expansion of 3.2%, stimulated, mainly, by the performance of manufacturing industry (4.2%). The main highlight was food products and beverages (6.1%), followed, in a smaller degree, by basic metallurgy (14.8%). On the other hand, chemical products (-11.3%) was the only activity of the manufacturing industry with a negative result. It can be observed, still in this comparison, the decrease verified in mining and quarrying (-6.5%).