In June, the seasonally adjusted regional indexes of industrial production revealed a predominantly negative scenario in comparison with May, with fall in 10 of the 14 areas surveyed.  The biggest falls occurred in Amazonas (-5.4%) and Paraná (-4.3%). São Paulo (-2.3%), which has the most important industrial park in Brazil, had a rate below the national average (-1.7%). Espírito Santo (5.1%), Pernambuco (2.2%), Ceará (0.9%) and Pará (0.2%) are the places where production grew from May to June.

In terms of the rate accumulated in the semester, there was increase of production: the highlights were Pará (13.5%), Ceará (7.2%) and Bahia (5.5%). All of them were above the national average: Pernambuco and Espírito Santo (both with 4.7%), Minas Gerais (4.6%), São Paulo (3.4%), Rio de Janeiro (3.3%) and the Northeast region (3.1%). The favorable performance of these places can be explained by the dynamism of exports (iron ore, siderurgical products, petroleum, cellulose and sugar) and the important presence of activities which generate consumer goods (durable and non-durable ones).

The result accumulated in the first semester, for the whole country, reflects a strong deceleration of the production rhythm between the first (4.6%) and the second quarter (0.8%). This behavior is observed in most (9) of the 14 areas surveyed (Table 3). Amazonas leads this loss of dynamism, changing from an increase of 9.3% in the period January-March to fall of 12.1% in the second quarter.This was mainly a consequence of the falls of electronic material and communication equipment (from 14.1% to -22.4%). This sector, of major relevance to the industrial activity, was strongly affected by the reduced sales of mobile telephones for the external market.

 

The comparison June 06/June 05, showed that there was 0.6% fall in the country result and negative regional indexes in five different areas. It is worth mentioning the difference in the number of business days, in this case (21 days in 2006 versus 22 days in 2005). The biggest fall was registered in Amazonas (-20.0%), reflecting the strong negative impact from the sector of electronic material and communication equipment. Rio Grande do Sul (-6.7%), Santa Catarina (-2.2%), Paraná (-1.2%) and Minas Gerais (-0.8%) were also below the national average. Among the sectors in expansion, Espírito Santo (16.1%), Pará (14.8%), Ceará (7.0%) and Pernambuco (6.1%) reached their most significant rates. The industry in the Northeast Region (2.0%), Goiás (2.0%), Bahia (1.3%), Rio de Janeiro (0.8%) and São Paulo (0.5%) which also had positive results.

Amazonas

In June, the industry in Amazonas had 5.4% fall over the immediately previous month, considering a seasonally adjusted series. In relation to the immediately previous quarter, there was a 7.9% reduction. In comparison with June 2005, there was fall of 20.0%, the third consecutive negative rate since the beginning of the time series in January 2002. The industrial production in Amazonas shows negative results both in the second quarter of 2006 (-12.1%) as in the indicator accumulated in the first six months in the year (-2.7%), both in comparison with the same period in 2005. The indicator accumulated in the last 12 months (0.9%), which shows the deceleration tren in relation to previous months.   

 

In comparison with the same month in the previous year (-20.0%), production fell in 8 of the 11 activities. It is important to point out the significant negative contribution in the average of industry, from electronic material and communication equipment (-35.4%). In this segment, the highlight was the reduction of the production of mobile telephones, affected by the combination of the reduction of exports this year and a high base of comparison, due to a bigger production in June 2005.

 

The rate accumulated in the first semester of the year (-2.7%), versus that of the same period in the previous year, was negative in 5 of the 11 segments surveyed. The most relevant negative impacts came from electronic material and communication equipment (-7.9%) and from food products and beverages (-7.5%). On the other hand, other transportation equipment 916.0%) and editing and printing (32.4%) were the main positive contributions, especially due to the manufacturing of motorcycles and its parts and accessories; and also of video tapes.

 

Finally, the quarterly moving average showed decline of 3.6% in the quarters ended in May and June. In the comparison of a quarter with its immediately previous quarter, the industrial activity in Amazonas showed deceleration, with change from expansion in the first quarter (9.7%) to decline in the second one (7.9%).

Pará

In June, the industry in Pará had slight positive change in comparison with May, not considering the seasonal effects. In comparison with the same month in the previous year, there was significant increase (14.8%). The indicators for longer periods also increased: by 13.5% accumulated in the year and 7.8% accumulated in the last 12months. In the quarterly indexes the rates were positive both in comparison with the same quarter in the previous year (14.2%), and with the first semester of 2006 (4.2%); in this case, the series was seasonally adjusted.

 

In the comparison June 06/June 05, the increase of 14.8% of industry in Pará was caused by the positive performance in five of the six activities surveyed, with the main positive impact coming from metallurgy (26.5%), followed by mining and quarrying industry (9.2%) and by food products and beverages (35.5%). There was expansion of the production in these activities, especially of the following items: aluminum oxide; iron ore; frozen crustaceans, respectively. On the other hand wood (-13.4%) was the only activity with a negative rate, being influenced, above all, by the decline of compensated wood.

 

In terms of the rate accumulated in the first semester, the industry in Pará expanded 13.5%, due, mainly, to the favorable performance of mining and quarrying industry (18.3%) and metallurgy (16.3%). In these activities are highlighted, principally, the expansion of the items iron ore and aluminum oxide, respectively. On the contrary, the negative contribution came, once more, from compensated wood (-8.7%), with wood as the main highlight.

 

The quarterly moving average index had, in June, expansion of 1.0% in comparison with the quarter ended in May. In the comparison of a quarter with the immediately previous one, the industrial activity in Pará grew by 4.2%, and kept practically the same rhythm of growth as in the first quarter (4.8%). It is worth highlighting the sequence of positive results started in the period April-June 2005.

Northeast Region

In June, the industry in the Northeast Region fell by 1.8% in relation to May, with a seasonally adjusted series. In comparison with the same month in the previous year, there was 2.0% growth. The indicators for longer periods also had positive rates: 3.1% accumulated in the year and 1.8% accumulated in the last 12 months. The production in the second quarter of 2006 pointed to a positive result in comparison with the same quarter in 2005 (2.8%), but it was slightly lower than that of the immediately previous quarter (-0.1%). 

Considering the monthly indicator, the Northern industry had increase of 2.0%, with expansion in 7 of the 11 segments surveyed. The major positive impacts came from the industry of cellulose and paper (22.5%) textiles (9.6%) and metallurgy (10.2%), which had increased production, especially of the items: cellulose, cotton cloth and thread, and aluminum oxide and unconnected aluminum in raw form, respectively. On the other hand, apparel (-30.4%) and leather footwear and articles (-8.9%) exerted the main negative influences, of which the highlights were the decreasing production of cotton shirts and apparel for professional use, and also plastic footwear respectively.

 

In terms of the rate accumulated in the semester, the 3.1% increase resulted mainly from his positive performance of 8 among the 11 activities surveyed. The most relevant positive contributions were observed for cellulose and paper (30.0%) metallurgy (14.5%) and textiles (9.2%). In these segments the highlights were the growing production of cellulose, copper square bars, profiles and bars, and carbon steel square bars, and cotton cloth, respectively. On the other hand, the biggest negative impact came from apparel from professional use and slacks.

 

Finally, the quarterly moving average shows slight decrease (-0.4%) in the quarters ended in May and June. The industry in the Northern Region had slight change of 0.1% in comparison with the first and the second quarter, after three months with positive rates.

 

Ceará

 

In June, the industrial production in Ceará decreased by 0.9% in the comparison with May, in the seasonally adjusted series. In relation to the same month last year, expansion of 7.0% can be observed; it was the sixth consecutive positive result in this type of comparison. The rate accumulated in the first semester of the year increased by 7.2%, whereas the rate accumulated in the last twelve months remains on a deceleration trend (-0.9%). In the quarterly indexes the second quarter points to expansion to 4.0% in comparison with the same period of 2005, but it was 1.9% lower than in the immediately previous quarter.  

 

In comparison with the same month in the previous year, the production in Ceará shows increase of 7.0%, mainly due to the positive results in 6 of the 10 activities surveyed. The main positive contributions to the formation of the overall index came from textiles (22.3%), electric machines, appliances and equipment (117.4%) and petroleum refining and alcohol production (42.5%). In these fields the highlights were the good results for the following items: cotton cloth, transformers, diesel and gasoline. Among the fields with reduction the highlights are leather footwear and articles (-18.8%), because of the decreasing production of plastic footwear; and apparel (-16.1%), with slacks as the main item.

 

The rate accumulated in the first semester of the year increased by 7.2%, with positive results in 6 of the 10 subsectors surveyed. The main highlights in terms of the formation of the general index were the following segments: textiles (16.0%), electric machines, appliances and equipment (89.5%) and petroleum refining and alcohol production (35.7%) due to the good performance of the items cotton cloth and artificial cotton fiber, transformers diesel and gasoline, respectively. On the other hand, the major negative impacts was apparel (-21.8%), especially in terms of apparel for professional use, and also food products and beverages (-3.7%), due to the reduced production of peanuts and toasted cashew nuts.

The quarterly moving average remained practically stable (-0.1%) in the quarters ended in May and June. The indicator of quarter versus immediately previous quarter shows the opposite rhythm of production, having changed from expansion of 9.5% in the period January-March to decrease of 1.9% in the second.

Pernambuco

In June 2006, the industrial indicators in Pernambuco were positive in all comparisons. From May to June, considering the seasonally adjusted index, there was expansion of 2.2%, after the significant decrease observed in the previous month (-4.7%). In comparison with June 2005, the increase was 6.1%. Therefore, the indicators for longer periods, the indicators accumulated in the year and in the last 12 months show an upward trend, with rates of 4.7% and 4.2%, respectively. The production in the second quarter of 2006 showed positive results both in relation to the same quarter in 2005 (6.6%), and in relation to the immediately previous quarter (2.1%).

 

Considering June 2005, the industry in Pernambuco expanded by 6.1%, the eighth consecutive positive rate, with increased production of seven among the eleven subsectors surveyed. The main impacts, in terms of contribution to the overall industry were observed in food products and beverages (11.5%) and rubber and plastic (42.9%). These results were mainly related to the increments observed in the items: ice cream, and beer and draft beer; plastic films, and plastic pipes, tubes and hoses. On the other hand, chemical products (-21.7%) and textiles (-13.2%) represented the main negative pressures, due to the retrogression of the production of styrene butadiene rubber; and cotton cloth.

 

The index accumulated in the first semester decreased by 4.7%, with positive rates in eight of the eleven activities surveyed. Once more, food products and beverages (8.6%) and rubber and plastic (52.2%) were the main positive impacts, with the highlights being the items: “cachaça”, and beer and draft beer; plastic films, and plastic pipes, tubes and hoses. Other chemical products (-14.2%) and petroleum refining and alcohol production (-42.7%), were the main negative contributors to the overall industrial index. In these segments, stood out the retrogression of styrene-butadiene rubber and of alcohol.

 

Finally, the quarterly moving average index was stable between May and June. In the comparison between the quarter and the immediately previous quarter, there was acceleration of the production rhythm, which changed from a slightly negative figure (-0.1%) in the first quarter of the year, to expansion of 2.1% in the second.

Bahia

In June, the industrial production in Bahia decreased by 2.0% and had, for the second consecutive month, decrease of the seasonally adjusted month/month index, having accumulated fall of 2.5% in the period. In the comparison with the same month in the previous year, the rate was positive (1.3%) for the twelfth consecutive month. The index accumulated in the first semester of the year (5.5%) and in the last 12 months (5.7%) increased. Considering the quarterly indexes, there was expansion in the second quarter of 2006, of both the index related to the same period in the previous year (4.4%) and to the first quarter of the year (0.70%).

 

In comparison with the same month in the previous year (1.3%), only four of the nine industrial subsectors represented a positive contribution, with the main highlights being cellulose and paper (23.7%), due to the increased production of cellulose; and chemical products (3.4%) due to the production of high-density polyethylene, and fertilizers. On the other hand, the negative pressures came from petroleum refining and alcohol production (-2.8%), influenced by the decrease of the production of kerosene and lubricants; food products and beverages (-3.2%), due to the decrease of the production of powdered milk and toasted and ground coffee; and metallurgy (-4.4%), due to the reduction of the items copper square bars, profiles and bars, and carbon steel square bars.  

 

In terms of the index accumulated in the year, the industry in Bahia grew by 5.5%, with positive rates in six of the nine industrial subsectors surveyed. The major influences came from cellulose and paper (35.0%), due to the increase on the production of cellulose; petroleum refining and alcohol production (9.0%), due to the production of diesel, and gasoline; and metallurgy (16.5%), because of the increased production of copper square bars, profiles and bars and carbon steel square bars. On the other hand, the main decreases were observed in food products and beverages (-4.5%) and chemical products (-0.8%), due, respectively, o the reduced production of flour and “pellets” of soy oil extraction, and of refined soy oil; and polyvinyl chloride and non-saturated ethylene. 

 

The quarterly moving average index was practically stable (-0.1%) between May and June. The index of the comparison between the second and the third quarter of 2006 was 0.7%, a little lower than that observed in the first one (1.0%). It is worth pointing out that the industry in Bahia had its fifth consecutive quarter with positive rates, having accumulated, in the period, a growth rate of 6.5%.

Minas Gerais

The industrial production in Minas Gerais decreased by 2.7% from May to June 2006, not considering the seasonal influences. In the comparison with June 2005, there was also a negative rate (-0.8%), after 34 months of growth. The accumulated indicators increased in the first semester of the year (4.6%) and in the last twelve months (4.8%). In the second quarter of 2006, there was expansion of 3.0% in comparison with the same period in the previous month, and decrease (-0.3%) in comparison with the immediately previous quarter.

 

The monthly indicator of the industrial production in Minas Gerais decreased by 0.8%. This result was due to the performance of the manufacturing industry (-1.9%), once the manufacturing industry (5.9%) is the highlight as the main positive impact in June. There was decline of eight of the twelve activities of the manufacturing industry (3.7%). The latter had expansion of nine among the twelve activities surveyed, and the main positive contributions came from automotive vehicles (7.2%0, food products (4.3%) and machinery and equipment (13.5%). In these segments, the main highlights were, respectively, cars; yogurt and chilled milk; and digging machines. Among the subsectors whose production decreased, the most relevant items were: metal products (-8.9%), mainly due to the fall of the item iron and steel structures.

 

Finally, the quarterly moving average showed slight negative change (-0.4%) in the quarters ended in May and June. In the comparison with the immediately previous quarter, seasonally adjusted, the index for the period April-June 2006 was 0.3% lower than that observed for the first quarter (1.4%). It is worth mentioning that this is the second consecutive positive rate in this type of comparison, which results in accumulated increase of 14.5%.

Espírito Santo

In June, the industrial production in Espírito Santo grew by 5.1% in comparison with May, in a seasonally adjusted series. In relation to last year, there was increase of 16.1%, being this one the sixth consecutive positive rate. The results concerning the indicators for longer periods were also good: 4.7% accumulated in the first semester and 2.2% accumulated in the last twelve months. In the analysis by quarter, the increase of the production of April-June was 7.3%in comparison with the same period in the previous year.

 

In relation to June 2005, the industrial production of Espírito Santo grew by 16.1%, being this one the highest growth rate since May 2003 (18.1%). This result reflects the positive performance of the manufacturing industry (14.6%) and of mining and quarrying industry (19.3%). The latter was the highlight as one of the main positive contributions, mainly due to the item crude oil. Production increased in three of the four subsectors which form manufacturing industry, being the main highlights: metallurgy (31.6%) and food products and beverages (18.4%), as a consequence, to the increased production of steel ingots and blocks, and chocolate candies, respectively. On the other hand, the only activity which faced decrease was non-metallic minerals (-2.8%), with decrease of the production, mainly, with decrease of the production, especially of the item asbestos.

 

In terms of the index accumulated in the first semester of the year, the production increased by 4.7%, with positive results both in the manufacturing and in the mining and quarrying industry (2.8%). In the manufacturing industry, once more, three of the four subsectors surveyed had increase of their production, being the main highlights: metallurgy (9.3%) and food products and beverages (10.8%), due, mainly, to the items: steel ingots and blocks and chocolate candies, respectively. The only negative contribution came from non-metallic minerals, especially in terms of tiles and ceramic plates.

Finally, the quarterly moving average grew by 2.2% between May and June. In the comparison of the quarter with the immediately previous one, there was increase of 3.9% from the first to the second quarter of the year. The result was extremely above that of the first quarter (0.8%). It is worth mentioning that this is the third consecutive positive rate in this type of comparison.

 

Rio de Janeiro

In June 2006, the seasonally adjusted industrial production in Rio de Janeiro decreased by 2.8% in comparison with May, after similar increase in the pervious month. Compared to June 2005, the sector remains showing positive rates (0.8%), a behavior observed since August 2005. The accumulated indicators, both in the first six months of the year (3.3%) and in the last twelve months (3.0%), increased over the national average (2.6% and 2.0%, respectively). The production in the second quarter of 2006 pointed to a positive result in comparison with the same quarter in 2005 (1.7%), but was 0.4% lower than that of the immediately previous quarter (seasonally adjusted series).

 

In comparison with the same month in the previous year, the result of 0.8% is supported by the favorable performance of the manufacturing industry (3.1%), once mining and quarrying industry had strong deceleration (-8.3%). This subsector, affected by technical breaks for maintenance of platforms, interrupted a sequence of fifteen months with positive results, and accounted for the main negative contribution to the overall index. Manufacturing industry, which, for the second consecutive month, grew according to this type of comparison, had increase of only four subsectors. The most relevant positive contribution came from petroleum refining and alcohol production (40.3%), stimulated by the increase of the production of diesel and gasoline. This segment was influenced by a low comparison base, due to the interruption of activities for maintenance in an important company of the sector, in June 2005. It is also worth mentioning the positive results of food products (13.0%), of which the main highlights are the items preserved fish and crystallized sugar. Among the eight activities whose production decreased, automotive vehicles (-16.8%), followed by metallurgy (-4.0%) and other chemical products (-4.9%), accounted for the main impacts, due to the reduced production of trucks, tin plates; and washing soda.

 

The index accumulated in the semester increased by 3.3%, with expansion both in industry in mining and quarrying industry (7.8%) and in the manufacturing industry (2.3%). The favorable performance of the mining and quarrying sector throughout the year was the major contributor to the positive rate of the overall average. In the manufacturing industry, five of the twelve subsectors had positive results, being food products (18.8%), pharmaceutical products (12.0%) and petroleum refining and alcohol production (6.1%), the main highlights. Among the sectors with decrease, metallurgy (-10.5%), still influenced by the interruption of the melting pot of a big company, was the main impact, due to the reduced production of tin plates or steel bobbins and plates.

 

The quarterly moving average index had reduction of 0.5% in the quarters ended in May and June. According to the seasonally adjusted quarter / previous quarter index, the rhythm of industrial production in the state fell (-0.4%) from the first to the 2^nd quarter of 2006. This result was below the figure of the period January-March 2006. It is worth mentioning that this has been the first negative rate, in this type of comparison, since the first quarter of 2005.

São Paulo

In June, the industrial production in São Paulo decreased by 2.3% in comparison with may, considering a seasonally adjusted series, after a sequence of two positive results. The index accumulated in this period was 2.4%. In relation to the immediately previous quarter, there was increase of 1.3%. The indicator relative to the same periods in 2005 were positive and above the national average: 0.5% over June 2005; 2.1% in the second quarter of 2006; 3.4% accumulated in the year and 2.4% accumulated in the last twelve months.

 

In the comparison June 06/ June 05, the 0.5% increase is attributable to the positive contributions from eight of the twenty subsectors surveyed. Among the subsectors which most affected the overall performance, the highlights were: food products (10.4%) and petroleum refining and computer equipment (8.2%). In these segments, the highlights were the production of crystallized sugar, and concentrated orange juice in the fist: and gasoline in the second. On the other hand, other chemical products (-7.8%) and other transportation equipment (-13.2%), had the main negative pressures, due, mainly, to the reduced production of insecticides, and rubber stickers; and airplanes and bicycles.

 

The index accumulated in the year showed increase of 3.4%, with twelve of the twenty subsectors with positive results. The positive contributions coming from automotive vehicles (7.4%) and electronic material and communication equipment (13.4%) were the most relevant contributors to the overall index. The increase of the production of cars; mobile telephones; and equipment for mobile telephony, accounted, to a great extent, for the positive performance of those segments. On the other hand, metal products (-5.8%) and other chemical products (-1.4%) were the main negative impact, influenced by the reduced production of steel or iron springs and plates; rubber stickers, and insecticides.

 

Finally, the quarterly moving average index was stable in the quarters ended in May and June. In comparison with the immediately previous quarter, the industry in the state of São Paulo has been on an upward trend for three consecutive months, with a rate of 1.3% in the period April-June 2006. It is important to point out that in this type of comparison; there was a sequence of five quarters with positive rates, resulting in growth of 12.1%.

 

Paraná

The industrial production in Paraná decreased by 4.3% in june, in comparison with the immediately previous month, not considering seasonal influences, afterthree consecutive positive results, in a period in which the accumulated index increased by 8.6%. The comparison with June 2005 also resulted in a negativerate (-1.2%). In relation to the indicators for longer periods, the results were: -3.8% accumulated in the semester ad -4.2% in the last twelve months. In terms of the quarterly indexes, there was retrogression (2.1%) over the second quarter of last year; in comparison with the fist quarter of 2006 there was increase of 4.8%.

In terms of the quarterly index, the production in Paraná decreased by 1.2%, with negative rates in only six of the fourteen subsectors surveyed. The main highlights contributing to the formation of the overall average were: automotive vehicles (-020.3%), cellulose and paper (-14.1%) and wood (-15.7%). These subsectors had as their main positive contributions the items: injection pumps for vehicles; cardboard boxes; and compensated wood. On the other hand, the main positive highlights came from food products (9.7%), due, mainly, to the increase of the production of crystallized sugar and of refined soy oil; and of editing and printing (21.8%), stimulated by the results of books and printed teaching material.

The index accumulated in the first semester showed reduction (3.8%), with negative results in six of the fourteen subsector surveyed. The main negative contributions to the overall average were those of automotive vehicles (-16.1%), machinery and equipment (-9.9%) and wood (-12.5%), due, mainly, to the reduced production of the items: injection pumps for vehicles, and cars; machines to process cellulose paste, and household appliances and also compensated wood. On the other hand, the main negative pressures were those of food products 93.1%0 and plastic rubber 914.3%), being the highlight the increase of the production of refined soy oil and crystallized sugar; and plastic pipes, tubes and hoses.

 

Finally, the quarterly moving average index shows growth (1.3%) between May and June. In the comparison quarter/immediately previous quarter, seasonally adjusted, there was increase of 4.8% in the period April-June 2006, after five quarters with negative rates.

 

Santa Catarina

In June, the industrial production of Santa Catarina decreased by 0.7% in comparison with May, considering a seasonally adjusted series, after increase of 2.3% in the previous month. Compared to the previous month, there was also a negative rate (-2.2%). This way, the indicator accumulated in the last twelve months (-3.4%) faced deceleration over the result of May (-3.0%). In terms of the quarterly indicators, the production in the period April-June 2006 had negative rates in comparison with the same period in 2005 (-3.2%) and in comparison with the immediately previous quarter (1.7%).

 

In the comparison June 06/June 05, the 2.2% fall reached seven of the eleven industrial subsectors surveyed. The main negative contribution came from food products (-15.8%), affected by the reduced production of most of the products surveyed, especially chicken pluck and giblets. The negative highlights were wood (-23.5%) and apparel (-16.5%), with the main negative influences coming from the items: metal covered items and cotton outfits for women, respectively. On the other hand, the most relevant positive contributions was machinery and equipment (30.5%).   

 

In the end of the first semester of the year, the industrial production in Santa Catarina decreased by 1.0%, stimulated by the favorable performance of six of the eleven activities surveyed. The main negative impact was food products (-10.8%), still affected by the reduced production of cattle and poultry pluck and giblets throughout the year. It is also worth mentioning the retrogression of wood (-21.2%), non-metallic minerals (-7.3%) and apparel (-6.0%). Among the segments whose production increased, the main positive contribution came from automotive vehicles (29.5%), followed by rubber and plastic (14.6%0 and machinery and equipment (5.7%0. In these subsectors the highlights were the items: bus and truck trunks, plastic pieces and accessories for vehicles, and refrigerators and freezers, respectively.

 

Finally, the quarterly moving average index was stable (0.0%) in the quarters ended in May and June. In the quarter/previous quarter comparison (seasonally adjusted), there was reduction of the rhythm of the industrial activity in the state. From the second to the first quarter of 2006, there was decrease of 1.7%, less than registered in the first quarter this year (2.6%) and in the last quarter last year (2.4%).

Rio Grande do Sul

In June 2006, the industry in Rio Grande do Sul had negative results in all the comparisons. From May to June, considering a seasonally adjusted series, there was retrogression (1.2%), after two months with negative rates. In comparison with the previous year, the fall was 6.7%, being this one the tenth consecutive negative rate. This way, the indicators accumulated for the first semester of the year and in the last twelve months, which decreased by 3.9%, represented the downward trend more significantly. In the analysis by quarter, the production of April-June showed decrease in comparison with the same quarter in the previous year 9-5.9%) and in comparison with the immediately previous quarter (-2.2%).

 

The monthly indicator of the industry in Rio Grande do Sul decreased by 6.7%, affected by the negative performance of eight of the fourteen subsectors surveyed. The main negative contributions to the formation of the overall average of industry were observed in machinery and equipment (-28.3%), footwear and leather articles (-19.4%) and tobacco (-11.9%). On the other hand, the main negative impacts came from food products (4.3%), in which the highlight was the increased processing of bovine and swine meat; and other chemical products (3.3%), due to the biggest production of high-density polyethylene and non-saturated ethylene.

In terms of the indicator accumulated in the year, the industrial production of Rio Grande do Sul fell by 3.9%, with negative rates in seven of the fourteen subsectors surveyed, with the main highlights being: machinery and equipment (-18.2%), footwear and leather articles (-9.1%) and tobacco (-9.2%), which had decrease in the production, mainly, of air conditioners, and harvesting machines, tennis shoes and processed tobacco, respectively. On the other hand, food products (4.5%) and automotive vehicles (3.0%) were the main negative pressures, in which the highlights were the production of the following items: bovine meat and semi-white rice; and bus trunks, respectively.

The quarterly moving average index was stable (0.0%) between May and June. In the comparison with the immediately previous quarter, the decrease was only 2.2%, more than was observed in the last two quarters: -1.5% in the last quarter of 2005, and -.9% in the first quarter this year. These figures confirm the acceleration of the industry of the state, which started in the period July-September 2005 (1.1%).

 

Goiás

In June, the industrial production in Goiás decreased by 1.9% in comparison with May, considering a seasonally adjusted series, after the significant increase (7.0%) in the previous month. In terms of the other comparisons, all the results were positive: expansion (2.0%) in comparison with the same month in the previous year; increment of 1.85 to the index accumulated in the first semester of the year, and increase of 0.9% accumulated in the last 12 months. Considering the quarterly indexes, the production of the period April-June grew by 2.1% over the same period in the previous year, and by 4.4% over the immediately previous quarter.

 

In comparison with June 2005, the 2.0% expansion was stimulated by the growth of the four subsectors of manufacturing industry (3.8%). The main positive contributions came from food products and beverages (2.6%), reflecting the major production of beer and craft beer, and of soft drinks; and chemical products (9.3%), due, mainly, to the increased production of medicines and soaps. Mining and quarrying industry, with 17.9% decrease, had the only negative result, affected by the reduced production of asbestos.

 

In terms of the index accumulated in the first semester of the year, the 1.8% expansion was supported by the growth of manufacturing industry (3.9%), once mining and quarrying faced significant fall (-18.9%), due to the item asbestos. In the manufacturing industry, all the subsectors had positive results, being the most relevant contributions: chemical products (12.1%) and food products and beverages (1.6%), of which the highlights were, respectively, the increased production of the items: medicines, fertilizers, and soft drinks, and beer and draft beer.

 

Finally, the quarterly moving average index expanded by 1.0% in the quarters ended in May and June. In the comparison between a quarter and the immediately previous one, with seasonal adjustment, there was increase of 4.4% from the first to the second semester, after three consecutive months with positive rates.