The change of the industrial production index from March to April was null (0.0%), considering seasonally adjusted indexes. In relation to April 2005, the sector had decrease of 1.9%, having accumulated expansion of 2.9% in the first four months of the year, in comparison with the same period of 2005.  The index accumulated in the previous twelve months, which reached 2.6% in April, pointed to decrease in the rhythm of growth of the rate in relation to the rate in the previous month (3.3%).

The stability in industrial activity between March and April reflects a bigger concentration among the sectors in which there was increase of production (14) than among those in which there was decrease (9), considering the twenty-three subsectors which have seasonally adjusted series. Among the types of industry with increased production, the most important performances to the overall result came from metallurgy (4.2%), other chemical products (2.0%) and beverages (3.5%). On the other hand, pharmaceutics (-7.0%) and food products (-1.5%) were the main negative contributions.

Still in comparison with the previous month, in the indexes by category of use, the subsectors of durable consumer goods (1.7%) and semi-durable and non-durable consumer goods (1.3%) had positive rates, whereas capital goods (0.0%) and intermediate goods (0.1%) remained stable.

Due to the April result, the quarterly moving average indicator remained stable, and had slight positive change of 0.2% compared to March. In this same comparison, the subsector of durable consumer goods showed acceleration (increase of 0.9% between March and April), whereas semi-durable and non-durable consumer goods (0.2%) and intermediate goods faced stability. The segment capital goods (-0.3%) has kept its decelerating trend.      

Industrial sector fell by 1.9% in relation to April 2005

In the comparison April 2006/April 2005, the industrial sector had decrease of 1.9%, after six months with growing rates. This result was influenced by the lower number of business days in the month (18, in 2006 versus 20, in 2005). In this index, nineteen of the twenty-seven subsectors surveyed fell in April, differently from March, when this happened in only six subsectors. The major negative contributions to the overall rate came, in order of relevance, from: food products (-6.9%) automotive vehicles (-6.2%) and pharmaceutics (-11.4%). In relation to the subsector of food products, there was reduction by 65% in the products surveyed, especially in the items meat and pieces of swine and bovine meat, as a consequence of the decrease of external sales. This fall was influenced not only by the reduction of the consumption of chicken meat on the international market, because of the avian influenza, but also by the serious incidence of foot-and-mouth disease, which caused the embargo of exports of bovine meat. Among the activities which showed this increase in relation to April 2005, the major positive impact to the formation of the overall rate was Office machines and computer equipment (52.2%), followed by Petroleum refining and alcohol production (8.3%), due to the increment in the manufacturing of the items computers and diesel, respectively.   

The fall observed in the quarterly moving average index of April (-1.9%) contrasts with the rhythm of growth of the first quarter this year (4.6%). The difference in the number of days worked in April this year was an important aspect of this negative result. The deceleration between these two periods was present in the four categories of use, but was more intense in the segment of durable consumer goods, which, after increase of 14.9% in the first quarter, had a rate of 0.5% in April. In this movement, the main highlights were the fall of automobiles, whose rate changed from 12.6% in the period January-March to -2.0% in April, and of mobile telephones (from 31.3% to -0.1%). The production of electronic appliances decelerated more slightly between these two periods (from 13.6% to 7.8%).

The indexes by category of use showed that durable consumer goods (0.5%), even having faced decrease of rhythm, was the only segment which kept its positive rate. The fall of production of capital goods (-0.3%) reflected the performance of capital goods for transportation (-6.9%) capital goods for industry (-7.1%) and agricultural capital goods (-18.6%). The segments capital goods for construction (8.1%) for electricity (28.7%) and for mixed use (5.0%) kept a significant increase. The result of intermediate goods (-1.7%) was negatively affected by the performance of complex industrial inputs (-2.4%); pieces and accessories for industrial transportation (-5.6%); and food products and beverages for industry (-11.5%). It is also important to highlight the fall observed in inputs for construction (-1.7%), which interrupted five months of positive rates in this indicator, and also the fall of the subsectors of packaging (-2.2%). The rate of -2.5% observed in the segment of semi-durable and non-durable consumer goods was the most negative among the categories and had the influence of Complex food products and beverages for domestic consumption (-4.1%) and of Other semi-durable and non-durable consumer goods (-10.1%), being the highlights the items poultry meat and leather footwear. The only positive contribution came from fuels (9.6%), due to the increment in alcohol (20.8%) and gasoline (7.8%).

Indicator accumulated in the first four months increased by 2.9%

The increase of the indicator accumulated in the first four months of the year, in comparison with the same period in 2005, reached eighteen subsectors and four categories of use. In the analysis by activity, office machines and computer equipment (63.2%) remained on the leadership, due to the bigger production of computers and its peripherals. It is also worth mentioning the results of mining and quarrying industry (10.9%), electronic material and communication equipment (162%), electric machines, appliances and equipment (15.6%) and petroleum refining and alcohol production (5.0%). On the other hand, food products (-1.2%) and wood (8.1%) were the main negative contributions.

The analysis of the indicator accumulated in the year, considering the indexes by categories of use, showed that durable consumer goods (10.9%) had the highest rate. It was followed by capital goods (6.7%), and both figures were above the national average (2.9%). The segment semi-durable and non-durable consumer goods increased 2.4%, and intermediate goods, by 1.6%.

In summary, the industrial remained rather stable in April. The fall of 1.9% in April 06/April 05 was relative, since there was a difference in the number of business days in the two years. In this same comparison, the seasonally adjusted series increased by 2.5%. By evaluating the indexes every four quarter, that industry increased by 2.9%, and interrupted the deceleration trend which had existed since the last four months of 2004 (see the figure below).