In the series without seasonal adjustment, there was increase in relation to December 2005. The accumulated industrial production was 2.8%, versus 3.1% in 2005.

In December 2006, the industrial production increased by 0.5% in comparison with November, considering the series without seasonal adjustment. It was the third positive consecutive result, with an accumulated figure of 2.2% from October to December. In comparison with December 2005, the rate was 0.4%. Consequently, the rate accumulated in the year was 2.8%, below the result obtained in 2005 (3.1%). The industrial production in the in the last quarter of 2006 surpassed the figure of the previous quarter by 1.1%, and the figure of the fourth quarter of 2005 by 3.2%.

The increase of the production level from November to December (0.5%) results from the existence of a bigger number of industrial sectors on a growing trend (thirteen), versus fewer sectors on a falling trend (ten) among the twenty-three seasonally adjusted subsectors. In terms of growing industries, the highlight was automotive vehicles 92.750, followed by food products (1.0%) and petroleum refining and alcohol production (1.8%). Electronic material and communication equipment (-4.4%) and other chemical products (-1.3%) were the main negative contributions, after monthly increases of 2.4% and 1.8%, respectively.

The performance of capital goods, from November to December, was particularly positive (5.4%). The segment had the second consecutive positive rate, having accumulated growth of 7.1% in the last two months analyzed. Also with a performance above average, the sector of semi-durable and non-durable consumer goods grew by 1.4%. The index for intermediate goods (0.4%) was close to the overall average (0.5%), whereas the sector of durable consumer goods (-0.4%) faced its second consecutive fall, after increase of 2.9% in October. The reaction of domestic consumption and of investment  in the end of last year affected the performance of industry in December a month when the sector reached a record level in the overall rate of industry, capital goods and semi-durable and non-durable consumer good (seasonally adjusted).

In relation to December 2005, the industrial sector increased by 0.4%, which was the lowest result since July 2006, significantly below the November (4.2%) and October rates (5.0%). In the December result, there was influence of the lowest number of business days (20, in 2006 versus 22, in 2005), besides the concentration of collective vacation in some important sectors. In this index, sixteen of the twenty-seven subsectors surveyed faced decrease; in November only seven did. Among the ten activities with increase, the major positive impacts to the overall rate were office machines and computer equipment (40.7%), followed by mining and quarrying industry (7.9%), beverages (9.3%) and machinery and equipment (5.5%). The main negative pressures were electronic material and computer equipment (-13.3%) and automotive vehicles (-4.8%).

Still in relation to December 2005 ,all the categories of use increased, except durable consumer goods (-9.3%), affected by the items automobiles (-14.7%), mobile phones (-24.3%) and household appliances of the “brown type” -TV sets, DVD players, and so on – (-8.8%). Capital goods (5.8%) had the highest increase, and the highlights were capital goods for mixed use (12.6%), capital goods for industrial use (8.8%) and agricultural capital goods (26.6%). This last subsector interrupted a sequence of twenty-seven months with falling results, which can mean the beginning of a recovery process. Intermediate goods (1.7%) and semi-durable and non-durable consumer goods (0.2%) also increased, but below the average for the industry.

The quarterly-based indexes (table above) confirm the fact that the industrial sector had positive rates throughout 2006: after growing by 4.6% in the first quarter of 2006, there was deceleration in the two subsequent quarters, when the rates were between 0.9% and 2.8%. In the fourth quarter of 2006, compared to the equivalent period in 2005, the industry once more shows increase of the rhythm (3.3%). In this quarter, the production of capital goods had the biggest increase 97.75), being followed by durable consumer goods (4.3%). Below the overall index were semi-durable and non-durable consumer goods (2.9%) and intermediate goods (2.3%).

In relation to the previous quarter (table above), seasonally adjusted series, the industry had grown for five consecutive periods having capital goods as the main highlight. This segment has had increase for seven semesters, and has led the expansion in the last two quarters. The results, by category of use, in comparison with the fourth quarter of 2006 with the immediately previous quarter, were the following: capital goods (3.0%), semi-durable and non-durable consumer goods (0.5%), intermediate goods (0.1%) and durable consumer goods (0.0%).

The rate accumulated in 2006 (2.8%) was little below the 3.1% obtained in 2005. In 2006, the increase of production encompassed twenty activities, four categories of use and nine of the seventy subsectors surveyed. The main impact over the overall index came from: office machines and computer equipment (51.6%); mining and quarrying industry (7.4%); machinery and equipment (4.0%); electric machines, appliances and material (8.7%); food products (-1.8%) and beverages (7.2%). The dynamics of this group of industries is connected to the performance of durable consumer goods and capital goods, the leaders of the recent expansion. It also benefits from the dynamism of exports of commodities, as in mining and quarrying industry (iron ore and petroleum) and in the industry of food products (sugar). Wood (-6.9%), apparel (-5.0%), and other chemical products (-0.9%) were the main negative contributions.

Among the categories of use, the biggest increase occurred in durable consumer goods (5.8%), with the overall growth of its several subsectors, especially automobiles (5.1%) and household appliances (10.0%). The continuation of credit, the relative stability of the job market and the increase of the salary mass stimulated the domestic sales of durable goods. The segment of capital goods (5.7%) also grew above the national average, especially due to the contributions from the computer science sector (capital goods for mixed use, which increased by 11.5%), and also due to the results for capital goods for industrial use (5.3%) and to the segments related to infrastructure, such as the production of machines and equipment for electricity (22.2%) and for construction (8.2%). The negative contributions came from the subsectors of agricultural capital goods (-16.5%) and capital goods for transportation (-1.6%). The segment of semi-durable and non-durable consumer goods (2.7%) was close to the overall average of industry and had as its main highlight the activity beverages for domestic consumption (3.1%). In this case, the main items were soft drinks and beer. It is also worth mentioning the subsector Other non-durable goods (3.3%), strongly related to the performance of the pharmaceutical and editing and printing industries. The production in the subsector semi-durable goods was 3.1% below the figure of 2005.

Still in relation to the accumulated increase in 2005, the sector of intermediate goods (2.1%) had the lowest increase among all the categories of use, despite the growth of all its subsectors, except of complex fuels and lubricants (-1.0%). The most relevant segment in this category, complex industrial inputs (1.2%), had moderate increase. The statistics of foreign trade, according to the Department of Foreign Trade (SECEX), show that in 2006, the rhythm of total exports (3.3%), which may be a sign pf a bigger participation of imports and intermediate goods. The index of inputs for construction (4.5%) closed the period with a rate above the overall for this category and above the figure of 2005 (1.3%).

In December 2006, there was recovery of the rhythm of industry which, for the third consecutive month, increased in the seasonally adjusted series. With these results, the quarterly moving average index showed the recovery of the industrial activity in the end of 2006. In December, for instance, there was increase of 0.7% in comparison with November, the biggest increment since December 2005. In the quarters which end in November and December, this indicator was also positive for the three categories of use, especially capital goods (2.3%) followed by intermediate goods and durable consumer goods (both with 0.7%), and semi-durable and non-durable consumer goods (0.5%).

In summary, since April 2006, the industrial increased gradually, accumulating, up to December, increase of 2.7%. Among the categories of use, in this same comparison the sector of capital goods grew by 6.9%, being followed by intermediate goods (1.9%) and semi-durable and non-durable consumer goods (1.1%). Durable consumer goods faced deceleration (-3.2%).