In October 2010, industrial production increased 0.4% compared to the previous month (seasonally adjusted series)...

In October 2010, industrial production increased 0.4% compared to the previous month (seasonally adjusted series), after being practically stable for two months (-0.1% in August and 0.1% 0.1% in September. Compared to October2009, there was increase of .1%, with deceleration of increase in relation to previous results.  The index accumulated in the first 10 months of the year was 11.8%, the same as the annualized rate (index accumulated in the last 12 months), that remained on an upward trend as started in October last year and reached its highest rate in all the time series.

Among the subsectors, 12 recorded increase and 15, decrease

The positive result (0.4%) of industrial activity between September and October recorded increase in 12 subsectors and decrease in 15 others.  Among the subsectors with increasing results, the main impacts came from pharmaceutical articles (4.9%), other chemical products (2.9%), automotive vehicles (1.6%), metal products (5.3%), metallurgy (2.7%) and other transportation equipment (6.0%).  Except for pharmaceutical industry, with two consecutive months of increase, the other subsectors recorded decrease versus results in September:  -1.5%, -0.8%, -4.2%, -2.4% and -1.9%, respectively.

Among the activities with negative results, the major impact on the overall average came from editing and printing (-12.2%), which returned part of the expansion occurred in September (17.0%), followed by food products (-2.1%), mining and quarrying industry (-2.5%), electric machines, appliances and equipment (-3.7%) and textiles (-3.1%).

Among the categories of use, in the comparison October/September, only durable consumer goods (2.8%) recorded increase, after having fallen (-1.0%) in September. Other categories recorded decreases: intermediate goods and semi-durable and non-durable consumer goods (both with decreases of –0.1%) and capital goods.  In the last three months, capital goods and intermediate goods accumulated, respectively, decreases of 2.8% and 1.6%, whereas semi-durable and non-durable consumer goods was the only one to record increase (1.5%) in the previous month.

The positive performance in October led to slight positive change in the quarterly moving average, for the second consecutive month (0.2% in September and 0.1% in October).  Among the categories of use, durable consumer goods recorded the biggest increase (0.6%) in the month, after being stable in September, followed by semi-durable and non-durable consumer goods (0.2%).  Intermediate goods (–0.5%) and capital goods (-0.9%) recorded decreases between September and October; the latter was characterized by loss of -3.1% in the last four months.

October recorded lowest increase since November 2009

Compared to the same month in the previous year, industrial production has increased for 12 months, but the October rate (2.1%) was the lowest in the period.  This figure resulted from the existence of fewer business days (October 2010 had a business day less than 2009) and of the basis for comparison (in 2009, the index changed from -17.5% in January to -3.1% in October). The reduction of the level of increase was also observed in the dissemination index, which, after increases in 77% of the 755 products surveyed in March, fell to 55% in October, the lowest level since the same month in 2009 (42%).

By subsector, a total 17 out of 27 activities recorded increase, being the highlights automotive vehicles (7.4%), machinery and equipment (9.0%), mining and quarrying industry (8,6%), metal products (12.7%), other chemical products (4.4%), hospital, medical and optical equipment and other (22.1%) and non-metallic minerals (4.9%). In these subsectors the most significant contributions came from tractor trucks for towing, trucks and chassis with engines for trucks and buses; lifting-transporting machines, machining centers, lift trucks and harvesting machines; iron ore; parts and pieces for capital goods; insecticides, manure and fertilizers; watches; and Portland cement. The main negative impacts came from electronic material and communication equipment (–20.0%), electric machines, appliances and material (–10.6%), food products (–1.8%) and textiles (–6.9%), due to fall of mobile telephones and telephony appliances; transformers; crystallized sugar; and cotton cloth and beachwear.

Also in comparison with October 2009, capital goods recorded the biggest increase (6.0%), mainly due to capital goods for transportation (15.8%), and the bigger production of tractor -truck and trucks; followed by capital goods for industrial use (25.3%), construction (29.0%) and agriculture (19.4%). Negative contributions came from capital goods for electricity (-25.3%) and for mixed use (-6.5%).

Intermediate goods increased 3.2%, affected by other products associated to the activities of mining and quarrying industry (8.6%), automotive vehicles (12.3%), other chemical products (4.9%), metallurgy (3.2%) and metal products (12.4%), being the main highlights iron ore; chassis with engines for trucks and buses; insecticides, manure and fertilizers; iron-niobium and parts and pieces for capital goods. Petroleum refining and alcohol production (-6.2%), food products (-1.9%) and textiles (-5.2%) represented the main negative contributions.  Other highlights were the continuation of increases in inputs for civil construction (5.2%) and packages (1.2%).

Semi-durable and non-durable consumer goods increased 1.5%, being the main highlight: fuels (7.4%), food products and beverages and elaborated beverages for domestic consumption (1.8%) and other non-durable goods (1.3%), in which gasoline, soft drinks and beer and books and vaccines accounted for the main impacts.   The only negative contribution came from semi-durable goods (-3.9%), as a consequence of the fall of underwear and leather footwear.

Durable consumer goods was the only item to have a negative result (-4.9%) among the categories of use, influenced by automobiles (-4.1%), mobile telephones (–22.3%) and electronic appliances (–5.9%), on a downward trend for the fourth consecutive month, due to decreases in “white type” products (–12.4%) and in "brown ones” (–5.0%). Positive contributions came from motorcycles (19.6%) and furniture (5.2%).

Index accumulated in 2010 is positive for 25 of the 27 subsectors surveyed

The index accumulated in 2010 reached 11.8%, with overall increase (positive rates in 25 of the 27 industrial subsectors surveyed), with automotive vehicles (26.7%), machinery and equipment (29.2%) and metallurgy (21.5%) as the main automotive vehicles as the main positive highlights in terms of the overall average, followed by other chemical products (11.4%), metal products (26.8%) and mining and quarrying industry (13.9%).  Among the products, the main highlights are automobiles, tractor-trucks for towing cars and trucks; lifting-transporting machines, graders, compressors for air-conditioning appliances and microwave ovens; carbon-steel and special-steel  ingots, bars and square bars and bars made of other steel-alloys; herbicides for agriculture, oxygen and paints and varnishes; parts and pieces for capital goods; iron ore.  Tobacco products (-9.3%) and other transportation equipment (-2.7%) were the only ones to record negative rates for the index accumulated in 2010.

Also considering the index accumulated in 2010, capital goods (24.0%) records increase significantly above the overall average (11.8%).  Intermediate goods (12.9%) and durable consumer goods (11.3%) have recorded a two-digit increase, and semi-durable and non-durable consumer goods (5.9%) recorded more moderate increase. In summary, the result was positive (0.4%) in October, but reached only one of the four categories of use and 12 of the 27 industrial subsectors. On the other hand, increase occurs after two months close to stability (-0.1% in August and 0.1% in September).  In the series with seasonal adjustment, the quarterly moving average was positive for the second consecutive month, after negative rates in June (0.8%), July (-0.3%) and August (-0.2%). Compared to figures in 2009, there is still predominance of positive - however decreasing - results.  In the monthly index (2.1%), the subsector reached its lowest level of increase since November 2009. This situation reflected the moderate performance of industry and the rise of the basis for comparison.