In comparison with the immediately previous quarter, in the seasonally adjusted series, the main highlight in the second quarter of 2007 was industry, with growth of 1.3%. Services grew by 0.7% and agriculture, by 0.6%.

In comparison with the immediately previous quarter, in the seasonally adjusted series[1], the main highlight in the second quarter of 2007 was industry, with growth of 1.3%. Services grew by 0.7% and agriculture, by 0.6%. In relation to the second quarter of 2006, the Gross Domestic Product at market prices increased by 5.4%. Another highlight was industrial activity (6.8%), followed by services (4.8%) and agriculture (0.2%). In the first quarter of 2007, GDP grew by 4.9% in relation to the same period in 2006, and the sectors of industry grew by 4.9% and 4.7%, respectively and agriculture, 1.4%. The rate accumulated in the four quarters which end in the second quarter of 2007 grew by 4.8% in relation to the four immediately previous quarter.

In the second quarter of 2007, GDP reached R$630.2 billion, being R$ 542.7 billion relative to value added at basic prices and R$ 87.5 billion relative to excise tax.

Considering internal demand in the second quarter of 2007, in comparison with the immediately previous quarter, there was increase by 3.2% of gross fixed capital formation - the fourth positive rate in this comparison. Household consumption increased by 1.5%, followed by public administration expenditure (0.2%). Considering external demand, exports increased by 0.9% and imports increased at a higher rate (1.5%); it was the fifteenth consecutive increase in this type of comparison.

Manufacturing industry is the highlight in comparison with Q2 2006

GDP grew by 5.4% in the second quarter of 2007, in relation to the same period in 2006. Value added at basic prices increased by 4.9%; excise tax, by 8.6% mainly due to the increase of volume of import taxes.

Among the productive sectors, the highlight was industry, with of 6.8% in value added; in second place were services (4.8%) and agriculture (0.2%). In the industrial activity, the highlight was   manufacturing industry (7.2%), favored by the performance of chemical products, metallurgy, machinery and equipment, electric material, among others. Mining and quarrying industry grew by 5.9%, mainly due to the increase of 9.1% in the production of iron ore. It was followed by construction (6.3%) and electricity and gas, water sewage and urban cleaning (6.1%).   

The most significant growth rate was that of the services sector (4.8%), on a quarterly comparison basis, since the fourth quarter of 2004 (5.1%). The major highlights were financial intermediation and insurance (9.6%); retail and wholesale trade (8.1%); and information services (7.5%).

Among the components of internal demand, the main highlight was the increase by 13.8% of gross fixed capital formation, which can be seen as a result of the production increase and of imports of machinery and equipment. Household consumption had positive change of 5.7% - 15^th consecutive increase in this type of comparison. To this result contributed the rise by 5.2% of the real salary mass and of 26.5% (in nominal terms) of the balance of the financial system credit operations with free resources for physical persons. Public administration consumption expenditure increased by 3.9%.

In terms of external demand, exports remained on a growing trend, with rate of 13.0% in the second quarter of 2007. This segment was benefited by the low comparison basis of the second quarter of 2006, when there was a strike in the Brazilian Federal Revenue Secretariat. Imports also remained on a growing trend (18.5%) for the 15^th consecutive month. Since the first quarter of 2006, the increase of exports has surpassed that of imports in this comparison basis.

The increase by 4.8% of the GDP accumulated in the four quarters which ended in the second quarter of 2007, in relation to the four immediately previous quarters, resulted from the rise by 4.4% of value added and from the increase by 6.9% of excise tax. Production sectors had the following results: agriculture (6.6%), services (4.2%) and industry (4.2%).

In the same comparison basis, household consumption increased by 5.2% and the gross fixed capital formation, by 9.8%. This was the thirteenth consecutive increase, stimulated, among other factors, by the performance of construction and the increase of imports of machinery and equipment. Finally, the expenditure of consumption of public administration reached 3.5%. Exports increased by 7.7% and imports, by 20.4%.

Manufacturing industry is the highlight in GDP of Q1 2007

GDP increased by 4.9% in the first semester of 2007, in relation to the same period in 2006. Industry and services had rates of 4.9% and 4.7%, respectively and agriculture, of 1.4%.

All the four subsectors of industry had increase in the comparison by semester, and the highlight in this case was manufacturing industry (5.1%). Mining and quarrying industry and industrial services of public utility grew by 5.0%. Construction industry grew by 4.3% in this type of comparison.

Concerning services, the main increases were those of financial mediation and insurance (9.4%); information services (7.4%); trade (7.1%) and transportation, storage and mailing services (4.6%). The subsectors of real estate services and rents (4.1%); other services (3.1%) and public administration, education and public health (1.9%) also grew.

GDP at current prices

GDP reached R$ 630.2 billion in the second quarter of 2007, being R$ 542.7 billion relative to value added at basic prices and R$ 87.5 billion relative to excise tax.

The value added of agriculture was R$ 35.1 billion; of industry, R$ 161.8 billion; of services, R$ 345.8 billion. Among the components of demand household consumption totaled R$ 379.6 billion; consumption expenditure of public administration, R$ 119.4 billion; gross fixed capital formation, R$ 111.8 billion. The balance of goods and services had a surplus of r$ 12.4 billion and the stocks had positive change (R$ 7.1 billion).

In the second quarter of 2007 the financing capacity reached R$ 1,2 billion versus R$ 0,4% billion in 2006; this increase resulted, mainly, from the reduction of the foreign balance of goods and services in the total of R$ 1,4 billion and from the reduction by R$ 2,7 billion of net revenue of property received and sent to the rest of the world.

Gross National Revenue reached R$ 616.7 billion, versus R$ 550.4 billion in the second quarter of 2006. In this same basis of comparison, Gross Savings reached R$ 119.8 billion, versus R$ 101.3 billion in the second quarter last year.

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¹It is worth mentioning that the series are seasonally adjusted in a direct way, that is, the series for agriculture, industry, services, value added, GDP, government consumption, household consumption, gross formation of fixed capital, exports and imports of goods and services are individually adjusted.

²According to the Monthly Emplpyment Survey (PME/IBGE).

³According to the press note entitled " Monetary Policy and Financial System Credit Operations".