In August 2011, the industrial production index recorded negative change of 0.2% over the previous month, in the seasonally adjusted series, reducing to almost null the increase of 0.3% observed in July. Compared to the figure in the same period of last year, industry recorded positive indexes: 1.8% in August 2011, the highest result since last May (2.5%), and 1.4% accumulated in the period January-August 2011. The annualized rate, the index accumulated in the last twelve months, has remained on a downward trend since October 2010 (11.8%), and changed from 2.9% in July to 2.3% in August.

The complete publication of the Monthly Survey of Industry is available at www.ibge.gov.br/home/estatistica/indicadores/industria/pimpfbr/

In August, output in the industrial sector recorded its slowest pace in the last few months, present not only in the negative change of 0.2% over the level of the previous month, but also in the slight increase recorded in July (0.3%). Also in the series with seasonal adjustment, the evolution of the quarterly moving average reinforces a scenario of lower dynamism of the industrial sector, once it recorded negative figures in this month once more, after the slightly positive result of the previous month. Over the same period in the previous year, the industrial industry tor recorded positive results in the monthly index of August, after facing decrease in July. It is worth mentioning the influence of the calendar, because August 2011 had one business day more than the same month in the previous year. In the analysis of indexes by four-month period, industrial output has increased for six consecutive periods, but with clear reduction of increase. It recorded expansion of 1.6% in the first four months of 2011 and of 1.2% in the May-August period, after having 18% in the first four-month period of 2010, 10.7% in the second and 4.1% in the last one. All comparisons refer to the same period in the previous year.

Among the subsectors, in August, 11 recorded decrease and 16, increase 

In the rate of -0.2% recorded from July to August, 11 of the 27 activities surveyed presented decrease of output. The main negative contribution over the overall average came from food products (-4.6%). It is worth mentioning the negative contributions recorded by editing and printing (-7.8%), which returned part of the 15.8% of the rate of last July, electronic material and communication equipment (-5.9%), other chemical products (-1.6%), rubber and plastic (-2.4%) and electric machinery, appliances and material (-3.2%). On the other hand, among the 16 subsectors which recorded increase, the most relevant contributions came from  the subsectors of machinery and equipment (3.0%), tobacco (38.3%), significantly affected by the prolonged harvest, automotive vehicles (1.0%), pharmaceuticals (2.4%), toiletries, soaps and cleaning products (4.7%) and cellulose and paper (1.5%).

Among the categories of use, also in comparison with the immediately previous month, durable consumer goods (-2.9%) accounted for the most significant decrease in August 2011, eliminating the hike of 2.6% of last July. The subsectors of semi-durable and non-durable consumer goods (-0.9%) and intermediate goods (-0.2%) also recorded negative indexes. The former returned part of the 3.2% of July, and the second accumulated decrease of 2.4% in the last three months with decrease of output. The sector that produces capital goods, with increase of 0.9%, was the only one that recorded expansion in the month, after increase of 2.0% in the previous month.  

Quarterly moving average was -0.4%

With the negative result from July to August, the quarterly moving average index recorded decrease once more, and the quarter that ended in August faced reduction of 0.4% compared to the July level, after being practically stable in the previous month (0.1%). By category of use, except for capital goods, all the subsectors recorded negative rates, mainly intermediate goods, which faced the biggest decrease between July and August (-0.8%). It was followed by producers of durable consumer goods and semi-durable and non-durable consumer goods, both with decrease of 0.3% in the month.

Industrial output increased by 1.8% over August 2010 

Over the same month in the previous year, the overall production of industry recorded expansion of 1.8% in August 2011, reversing the decrease of 0.7% observed in July. The result of this month was spread among the categories of use, and 17 of the 27 activities surveyed recorded positive rates. It is worth mentioning that last August had one more business day (23 days) than that in the previous year. Among the subsectors, the relevant positive contributions over the average of industry came from automotive vehicles (5.8%), editing and printing (17.2%), machinery and equipment (5.6%), tobacco (78.3%), other transportation equipment (13.6%), electronic material and communication equipment (10.7%) and beverages (7.3%). The main highlights in terms of output among these activities were: trucks, vehicles for the transportation of goods and towing tractor trucks; books; machining centers, washing machines and microwave ovens; processed tobacco; airplanes and motorcycles; television sets; and soft drinks, beer and draft beer. On the other hand, the most significant negative highlights over the average came from: other chemical products (-5.5%), textiles (-15.4%) and food products (-2.4%), mainly influenced by the lower output of herbicides for use in agriculture, in the first subsector, of cotton bathing suits and cloth in the second subsector, and of crystallized sugar and concentrated orange juice, in the last one.

Among the categories of use, also in the comparison August 2011/August 2010, the results were positive, with capital goods (8.6%) presenting rhythm above that of overall industry (1.8%). This occurred mainly due to the increase of capital goods for transportation equipment (18.4%), followed by capital goods for industrial use (10.5%) and for construction (13.8%). In these subsectors the highlights were trucks, vehicles for the transportation of goods and towing tractor trucks, in the first group, machining centers and machinery and equipment for the cellulose industry, in the second, and earth –moving machinery, graders and shovel-loaders, in the last one. On the other hand, capital goods for electricity (-17.6%), for mixed use (-3.2%) and for agriculture (-7.2%) accounted for negative impacts on the total result of this category of use.

The performance of semi-durable and non-durable consumer goods was 2.1% above that of August 2010, reversing two consecutive months of negative rates in this type of comparison. This result occurred, to a great extent, because of by the advances in the groups of food products and beverages and elaborated beverages for domestic consumption (3.9%), other non-durable goods (3.7%) and fuels (2.3%), mainly because of the bigger production of soft drinks, beer and draft beer, in the first subsector, books in the sector, and gasoline, in the last one. On the contrary, the group of semi-durable goods (-8.9%) represented a negative influence in this category of use, being mainly affected by plastic footwear and bathing suits.

Still in comparison with the same month in the previous year, advancing below the average of industry (1.8%) were the following durable consumer goods (1.5%) and intermediate goods (0.6%). In the former, positive influences came from the bigger production of household appliances (17.0%), both of the White and Brown type (19.1% and 24.1%), respectively, of motorcycles (23.6%), of furniture articles (10.8%) and mobile telephones (2.4%), once cars (-8.8%) faced production decrease. The increment of 0.6% observed in intermediate goods over August 2010 was mainly affected by advances coming from the products related to the activities motor vehicles (11.4%), metal products (8.0%), cellulose and paper (3.4%), non-metallic minerals (3.6%) and mining and quarrying (0.9%), whereas the main negative contributions came from other chemical products (-5.4%), food products (-8.5%), textiles (-12.7%) and petroleum refining and alcohol production (-1.0%). In this category of use, it is also worth mentioning the positive results of the groups inputs for construction (4.9%) and packaging (2.2%).

Considering index accumulated in 2011, 16 of the 27 subsectors recorded increases

In terms of the indicator accumulated in the period January-August 2011, the overall rate of 1.4% resulted, mainly, from the positive performance of most of (16) the twenty-seven subsectors surveyed, being the main highlight the positive contribution of automotive vehicles (5.7%), influenced by the good results of most products surveyed in the subsector (approximately 80%). It is also worth mentioning the increases recorded by other transportation equipment (11.7%), editing and printing (7.2%), non-metallic minerals (4.3%), machinery and equipment (2.1%), pharmaceuticals (3.9%), mining and quarrying industry (2.5%), electronic material and communication equipment (6.2%) and medical, optical and other equipment (12.5%). 

In these subsectors, the highlights were the increased production of trucks, vehicles for the transportation of goods and towing tractor trucks; airplanes and motorcycles; books and magazines; ceramic tiles and plates, Portland cement and concrete; transporting machines, machinery and equipment for the cellulose industry, graders and microwave ovens; medicines; iron ore; mobile telephones; and watches. On the other hand, the subsectors textiles (-14.3%), other chemical products (-3.2%), food products (-1.3%) and footwear and leather articles (-9.5%) accounted for the main negative contributions to the average of industry, affected, to a great extent, by the items: cotton bathing suits and cloth;; herbicides for use in agriculture; crystallized sugar and concentrated orange juice; and plastic and leather footwear, respectively. 

Among the categories of use, also considering the index accumulated in the year, results remained positive in the segment of capital goods (5.6%) confirming the bigger dynamism in 2011, with increase significantly above average of the total of industry (1.4%), mainly due to the bigger production of capital goods for transportation equipment.  The sector that produces durable consumer goods grew 1.8% compared to the same period in the previous year, and also recorded expansion above the overall average, whereas intermediate goods (0.6%) and semi-durable and non-durable consumer goods (0.6%) had more moderate increases.