In May 2007, the Brazilian industrial production changed by 1.3% (seasonally adjusted series). In comparison with May 2006, it increased by 4.4%.

In May 2007, the industrial production changed by 1.3% in the seasonally adjusted series. In comparison with May 2006, industry grew by 4.9%. In the first five months of the year, there was increase by 4.4%. The annualized rate, the indicator accumulated in the last twelve months, repeated the result of April (3.3%).

In the comparison May/April (1.3%), there was increase in fifteen of the twenty-three subsectors surveyed which have seasonally adjusted series. The highlight was the performance of automotive vehicles (3.7%), followed by pharmaceutical articles (8.3%), machinery and equipment (3.1%) and food products (1.2%). The main negative contributions came from other chemical products (-1.8%) and beverages (-2.8%), after increase by 1.8% and 4.1% in the previous month, respectively.

Still in comparison with the immediately previous month, production of all the categories of use increased; the main subsector was capital goods (5.1%). Also with increase above the average of industry is durable consumer goods (1.5%). The subsector of semi-durable and non-durable consumer goods, with 1.3%, its highest result this year, and a rate of 2.2% accumulated in two months. The subsector of intermediate goods (0.6%), the most important of industry, shows the most moderate increase among the categories of use. 

The favorable behavior of industrial activity in May had positive impact on the quarterly moving average index. The index had increase of 0.8% between the quarters which ended between April and May, the biggest increment since December 2005 (1.1%). All the categories of use follow the trend indicated by the overall industry; the main increase between the two quarters was obtained for capital goods (1.3%) followed by durable consumer goods (0.7%), intermediate goods and semi-durable and non-durable consumer goods (both with 0.6%).

In relation to May 2006, there is increase of 4.9%; industrial production has had positive results for eleven consecutive months. In this comparison, there was increase of production in most (19) of the twenty-seven subsectors surveyed; the most relevant contributions came from machinery and equipment (19.0%) and automotive vehicles (10.8%). In the industry of machinery and equipment, there was increase of production of 67% of the 81 subsectors surveyed. In the sector of automobiles and car pieces, of the 24 subsectors surveyed, 75% had increase. It is also worth mentioning the positive highlights observed in the industries of electric machines, appliances and material (14.5%), metallurgy (7.1%), other chemical products (4.2%) and beverages (8.2%). Among the eight subsectors with decrease of production, the most significant to the overall rate of industry were editing and printing (-5.5%), electronic material and communication equipment (-4.2%) and cellulose and paper (-2.9%), in which the highlights were, respectively, CDs, mobile telephones and cellulose.  

Among the categories of use, still in comparison with May 2006, the segment of capital goods had the highest rates (19.4%), with a rhythm significantly above the average of industry (4.9%). This result was affected by the extremely good performances of its subsectors: capital goods for transportation (13.5%); for mixed use (18.0%); for industrial use (22.2%); for electricity (24.0%); for construction (16.4%) and for agriculture (42.8%). The production of durable consumer goods (6.0%), even under despite the negative impact of household appliances of the “brown type” , such as TV sets and radios (-19.7%), and of mobile telephones (-3.0%), increased above the figure for industry. It was influenced by the performances of automobiles (11.0%), household appliances of the “white type”, such as refrigerators and freezers (8.4%), motorcycles (13.1%) and furniture (4.9%). The segment of semi-durable and non-durable consumer goods had increase by 4.4%, the best result since October last year (5.7%). It had positive indexes in all the subsectors, especially food products and beverages for household consumption (6.0%) and fuels (8.4%). The main items accounting for these results were meats and poultry pieces, in the former subsector, and alcohol and gasoline, in the latter.

The production of intermediate goods (2.8%) had the lowest increase among the categories of use. This reflected, above all, the decreases in fuels and lubricants (-6.2) and in food products and beverages for industry (-5.4%), once industrial inputs (3.3%), the most important subsector in this category, had more dynamism and was mainly influenced by metallurgy products. Other highlights came from basic industrial inputs (5.5%) and from the subsectors of pieces and accessories for capital goods (19.6%) and for industrial transportation (5.7%). It is also worth mentioning the positive performance of inputs for construction (4.9%) and packaging (1.2%). 

The increase of the index accumulated in the period January-May, in comparison with the same period in 2006, was 4.4%; 20 activities had increase of production. The production of machinery and equipment (16.5%) remains as the leader in terms of impact on the overall index. Other relevant positive contributions to the overall result of industry came from automotive vehicles (8.1%0, metallurgy (8.3%) and food products (4.1%). On the other hand, among the subsectors with falling rates, the main highlight is electronic material and communication equipment (-10.1%).

According to the categories of use, still considering the indicator accumulated, capital goods was the only segment to have a two-digit increase (16.3%). The other categories had indexes below the overall average of industry (4.9%): intermediate goods (3.9%), durable consumer goods (3.7%) and semi-durable and non-durable consumer goods (2.5%).

In summary, the evolution of the indexes in the first five months of 2007 shows a positive scenario of industrial activity. In comparison to both the same period in the previous year and to the result in 2007, the sector has obtained positive results. The monthly indicator has increased since July 2006; in the seasonally adjusted comparisons, there was increase in May (1.3%). Since September 2006 there has been no negative rate, in a period in which there was accumulated increase of 5.2%.