After nine months of positive results, the industrial production changed by – 0.4%, in July 2007 compared to June, in the series without seasonal influence. The result was influenced by the decrease in the production in 12 among 23 industrial groups...

After nine months of positive results, the industrial production changed by – 0.4%, in July 2007 compared to June, in the series without seasonal influence.  The result was influenced by the decrease in the production in 12 among 23 industrial groups, especially food products and petroleum refining and alcohol production.  In the comparison with July 2006, the industry increased by 6.8% favored by the performance in all the sub-sectors of capital goods and by the growth of durable consumer goods, as a consequence of improvement in credit conditions.  The indicator accumulated January-July of 2007 registered 5.1% and of the last twelve months, 4.2%.

There was a decrease in the rhythm of production, from June to July, in 12 among 23 activities.  Stood out the negative results of food products (-2.5%), petroleum refining and alcohol production (-3.5%), machines and equipment (-2.7%), metal products (-5.4%) and pharmaceuticals (-3.8%).  Automotive vehicles (2.4%) brought the main positive contribution to the rate of July, where stood out, also, the growth of other chemical products (2.7%) and other transportation equipment (7.6%).

The category durable consumer goods (0.8%) was the only one which grew in July compared to the previous month, accumulating 5.0% in the last three months. Semi-durable and non-durable consumer goods (-3.3%), capital goods (-1.3%) and intermediate goods (-0.2%) decreased.

Increase in the production of automobiles stimulated growth of durable goods in July

In the comparison July 2007/July 2006, Industry increased by 6.8%, with 23 among 27 surveyed segments having increase in the production. The index resulted, mainly, from the contributions of automotive vehicles (18.3%), machines and equipment (17%), other chemical products (12.1%) and electric machines, equipment and material (17.2%). The result was influenced, negatively, by tobacco (-22.5%) and food products (-1.3%), due mainly to the decrease in the production of manufactured tobacco and crystallized sugar.

Still in the comparison July 2007/July 2006, capital goods (19%) and durable consumer goods (15.1%) increased above the industrial average (6.8%).  The first sector was stimulated by the sub-sectors of capital goods for transportation (21.8%), for mixed use (10.2%) and for industrial use (15.4%).  The recovery of agriculture, in this year, after the losses of 2006, was verified by the growth of 66.3% in the production of agricultural capital goods.  Supply and increase of the funding period explain the good performance of durable consumer goods, especially the production of automobiles (19.9%), mobile phones (15.9%) and white line household equipment (refrigerators, freezers, washing machines), with a rate of 11.2%.  The hike was not observed in brown line household equipment (TV, radio and stereo), which registered a rate of -2.9%, especially due to the reduction in the production of TV sets.  The production of intermediate goods (4.7%) increased below the national average, as a consequence of the reduction of food products and beverages elaborated to industry (-11.3%).  Finally, semi and non-durable consumer goods registered growth of 3.8%.

Electronic material and communication equipment registered -7.4% in the index accumulated in the year

In the indicator accumulated January-July 2007, in comparison with the same period of the previous year, the growth of 5.1% showed the increase in the production of 22 activities.  The major contribution occurred due to the manufacturing of machines and equipment (17.4%), followed by automotive vehicles (10.3%), basic metallurgy (7.6%) and other chemical products (6.3%). 

The main decrease came from electronic material and communication equipment (-7.4%), due mainly to the reduction in the production of TV sets.  By categories of use, the sector of capital goods, which increased by 17.0%, maintained the two-digit growing rate recorded since the beginning of the year.  For the other categories, the results, in the seven first months of the year, were: durable consumer goods (5.9%), intermediate goods (4.2%) and semi and non-durable consumer goods (3.0%).