Industrial production increased 2.8% from February to March this year...

Industrial production increased 2.8% from February to March this year, considering seasonal influences, accumulating a 5.7% gain in four months of expansion. In relation to March 2009, there was a 19.7% growth, the fourth consecutive two-digit increase in this type of comparison. Thus, the industrial sector accumulated, in the first quarter of this year, growth of 18.1% compared to the same period of 2009, and of 3.0% compared to the immediately previous quarter (fourth quarter of 2009), in the seasonally adjusted series. The annualized rate (accumulated in the last 12 months), by decreasing 0.3%, kept the reduction in rhythm and recorded a less intense fall in this comparison since January 2009 (1.0%).

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¹Refrigerators and freezers; stoves; washing machines and clothes dryers.

²Television sets, radio and DVD players.

In the seasonally adjusted series (2.8%), with the accumulated expansion of 5.7% observed in the last four months, industrial production in March 2010 was 0.3% below the record reached in July 2008 and practically eliminated the loss of 20.6% accumulated in the last three months of that year.

Growth from February to March was spread over 19 of the 27 industrial sectors. Among them it is worth mentioning automotive vehicles (10.6%), which surpassed the 5.6% loss accumulated in the last four months, food products (5.0%), machinery and equipment (5.2%), beverages (7.6%) and cellulose and paper (6.4%). On the other hand, the main negative pressures came from petroleum refining and alcohol production (-9.4%), greatly reflecting production interruptions of units in important enterprise of the sector, and from pharmaceutical industry, which, after having increased 17.0% in February, decreased 9.7% in March.

Still comparing March/February, among categories of use, the segment capital goods (3.0%) kept growing and had the highest rate. The expansions of semi-durable and non-durable consumer goods (1.3%), which showed the fourth consecutive positive result, and intermediate goods (1.3%), which began growing again after a 0.5% decrease in the previous month, were below average. The sector durable consumer goods (0.1%) remained stable after having accumulated a 9.2% expansion in the last two months.

The positive performance of industrial activity in March confirmed the upward trend of the quarterly moving average, which has been growing for 13 months. In general industry, the increase recorded between February and March was 1.8%, accelerating the rhythm in relation to the last four months. The highlight was durable consumer goods (2.9%), with the biggest increase among the categories of use, followed by capital goods and semi- and non-durable consumer goods (both with 1.4%). The sector of intermediate goods (1.0%) also showed a positive rate and keeps the upward trend initiated in March 2009.

Just petroleum refining and tobacco industry reduced production in relation to March 2009

The growth of industrial production in relation to March 2009 (19.7%) also had a generalized profile, reaching 25 of the 27 surveyed activities, and reflected, once again, not only acceleration in the production rhythm but also a low basis for comparison due to the effects of the international economic crisis of last year. Besides, March 2010 had one more working day than March 2009. The diffusion index, with increases in 77% of the 755 investigated products, also evidenced the dynamism of the industrial sector, by recording the highest level of the historical series, initiated in January 2003.

Automotive vehicles (36.6%) and machinery and equipment (49.5%) exerted the main positive impacts in the formation of the overall rate. It is also worth highlighting progresses in basic metallurgy (36.9%), metal products (41.2%), other chemical products (18.2%), pharmaceutical industry (22.3%), food products (8.3%), mining and quarrying industries (15.8%) and rubber and plastic (25.8%). The negative contributions came from petroleum refining and alcohol production (-11.0%), pressed by the previously cited interruption, and tobacco (-4.1%), because of the smaller cigarette production.

In the same comparison, all categories of use showed growth. The sector capital goods (38.4%), with the highest rate and the highest for this segment since March 2004 (39.9%), had its performance influenced by the expansion in all its subsectors, with highlights being capital goods for transportation equipment (33.7%), construction (244.5%), mixed use (37.0%) and industrial purposes (23.1%). The production of durable consumer goods (25.8%) kept the two-digit increase, influenced by household appliances (54.3%), both of the “white” line¹ (32.1%) and the “brown” line² (80.3%), cars (17.4%) and cell phones (6.3%).

Intermediate goods (18.6%) kept the sequence of five positive rates, partially backed up by products associated to basic metallurgy (36.9%), automotive vehicles (48.7%), other chemical products (17.2%), mining and quarrying industries (15.8%), metal products (48.8%) and rubber and plastic (26.4%). Petroleum refining and alcohol production (-15.8%) was the only negative pressure. It is worth highlighting the positive performances of inputs for civil construction (19.6%), the highest mark since December 1994 (21.6%), and packages (21.7%), with the highest rate of the historical series.

Finally, semi- and non-durable consumer goods (11.4%), with the second consecutive two-digit growth rate and the highest since July 1996 (12.6%), had the positive results in all subsectors, with highlights being other non-durable goods (12.4%) and foods and beverages prepared for domestic use (10.9%).

In the first quarter, production grows in 24 of the 27 activities and in all categories of use

In the accumulated in the first three months of this year, against the same period of 2009, the increase (18.1%) was supported by positive results in 24 of the 27 activities and in all categories of use.

Among the sectors, that of automotive vehicles (38.0%) kept the leading place with the strongest positive pressure, influenced by the 96% expansion of the surveyed products, with highlights being cars and trucks. It is also worth citing the positive contributions of machinery and equipment (42.1%), basic metallurgy (35.2%), other chemical products (25.6%), metal products (43.0%) and mining and quarrying industries (19.1%). Of the three decreasing branches, that of other equipment of transportation (-11.3%) remained the greatest negative impact.

There is acceleration in the growth rhythm of industry from the last quarter of 2009 (5.9%) to the first of 2010 (18.1%), both comparisons against the same period of the previous year. This movement reached all categories of use, with capital goods (from -1.6% in the last quarter of 2009 to 25.6% in the first quarter of 2010) and intermediate goods (from 6.7% to 19.5%) showing the highest rhythm increases.

The production of semi- and non-durable consumer goods (from 2.4% to 9.1%) also accelerated, but kept the below average performance in both quarters. The segment durable consumer goods, which kept the leading position in magnitude of growth in both quarters, showed the lowest gain between both periods, from 25.0% in the last three months of 2009 to 28.4% in the following quarter.

Compared to the previous quarter, production has grown for four consecutive periods

In comparison to the immediately previous quarter, industrial production has grown for four consecutive periods, accumulating a 17.2% gain. Among the categories of use, durable consumer goods (28.7%) and capital goods (25.3%) have the biggest gains accumulated, followed by intermediate goods (18.2%) and semi- and non-durable consumer goods (9.1%).