14 out of 24 sectors surveyed drop in March

The decline of 0.5% in the industrial activity from February to March was dominated by negative figures, reaching two out of the four major economic categories and the majority (14) of the 24 sectors surveyed. Among the activities, the main negative influences were registered in motor vehicles, trailers and  bodies (-2.9%) and machinery and equipment (-5.3%), the first activity offsetting part of the advance of 12.4% between January and February; and the second recording a cumulative loss of 6.1% in two consecutive months of drop in the production. Other important negative contributions to the overall industry came from the reduced manufacturing of food products (-1.2%), computer, electronic and optical products (-3.6%) and basic metals (-1.2%). It is worth highlighting that these activities posted positive rates last February: 0.1%, 1.4% and 3.1%, respectively. On the side of the ten sectors that expanded the production, the most important performances for the overall average were: coke, petroleum products and biofuels (5.4%), after standing stable in the previous month (0.0%), and mining and quarrying industries (2.4%), which offset the loss of 1.2% registered last February.

Among the major economic categories, still compared with the immediately previous month, capital goods (-3.6%) and durable consumer goods (-2.5%) recorded the steepest drops in March 2014, both halting two consecutive months of positive figures, when they posted a cumulative expansion of 22.4% and 7.1%, respectively. The segment of semi and non-durable consumer goods (0.0%) repeated the same level of the previous month, after registering a negative change of 0.4% last February. The sector of intermediate goods (0.1%) recorded the only positive rate, yet lower than in January (0.2%) and February (0.4%).

Quarterly moving average grows 0.6%

Still concerning the seasonally adjusted series, the evolution of the quarterly moving average index for the overall industry pointed to an expansion of 0.6% in the quarter ended in March against the level of the previous month, interrupting the downward trend started in October last year. Among the major economic categories, still in relation to this index on the margin, capital goods (5.3%) posted the most intense advance and offset the predominantly negative behavior since last November. The segments of durable consumer goods (1.4%), semi and non-durable consumer goods (0.6%) and intermediate goods (0.2%) also recorded positive rates in March.

Industrial output declines 0.9% compared with March 2013

Compared with the same month last year, the industrial sector fell 0.9% in March 2014. The negative figures prevailed, since three out of the four economic categories and the majority (16) of the 26 sectors declined the production.

Among the activities, motor vehicles, trailers and bodies (-13.6%) exerted the highest negative influence on the industry average, pressed at a great extent by the reduced manufacturing of cars, vehicles for transportation of goods, trucks, tractor trucks for trailers and semi-trailers, diesel engines for buses and trucks, and car pieces. Other relevant negative contributions came from the reduced manufacturing of machinery and equipment (-7.8%), fabricated metal products (-8.2%), electrical machinery and apparatus (-8.3%), other chemicals (-2.9%), furniture (-11.6%), textiles (-5.8%) and other transportation equipment (-5.8%). On the side of the ten activities that increased the production, the main impacts were registered in: mining and quarrying industries (8.0%), food products (5.0%), coke, petroleum products and biofuels (4.3%), computer equipment, electronic and optical products (9.6%), beverages (6.3%) and basic metals (2.1%).

Still comparing with the same month a year ago, capital goods (-8.4%) and durable consumer goods (-4.6%) posted more intense declines than the national average (-0.9%). Intermediate goods also recorded a negative figure in March 2014 (-0.1%), whereas the sector of semi and non-durable consumer goods (1.7%) posted the only positive rate.

By changing -8.4%, the sector of capital goods registered the most intense drop since December 2012 (-18.0%). In the formation of the March 2014 index, this segment was influenced by the decline of most of its groups, highlighted by the drops of 13.4% in capital goods for transportation equipment and of 12.8% in capital goods for industrial use. The other negative figures were registered by capital goods for construction (-2.7%) and capital goods for mixed use (-5.5%). On the other hand, capital goods for electricity (1.2%) recorded the only positive figure, while capital goods for agriculture remained stable (0.0%) over March 2013.

The sector producing durable consumer goods declined 4.6%, particularly pressed by the reduced manufacturing of cars (-14.8%). It is worth mentioning the negative impacts coming from motorcycles (-10.8%), furniture (-10.7%) and other household appliances (-2.6%). Conversely, the positive influences were posted in the groups of brown goods (42.2%), specially leveraged by the increased production of TV sets, and of white goods (2.1%).

In March 2014, the performance of the segment of intermediate goods (-0.1%) was influenced by the decline of the products associated to the activities of motor vehicles, trailers and bodies (-10.2%), fabricated metal products (-9.8%), machinery and equipment (-17.5%), other chemicals (-2.9%), textiles (-8.5%) and products of non-metallic minerals (-1.5%), while the positive pressures were registered in food products (15.1%), mining and quarrying industries (8.0%), coke, petroleum products and biofuels (2.0%), basic metals (2.1%), rubber and plastic products (1.8%) and pulp, paper and paper products (0.6%). Still in this category, it is worth mentioning the figures recorded by the groups of inputs for civil construction (-3,7%) and packaging (1.4%).

The expansion in the production of semi and non-durable consumer goods (1.7%) was explained at a large extent by the advances coming from the groups of fuels (15.0%) and food and beverages for domestic consumption (2.5%), mainly leveraged by the advances in the production of motor gasoline and ethanol in the first sub-sector, and of beer, draft beer, refined sugar from sugarcane, concentrated juices of fruits and meat and offal from fresh or frozen poultry, in the second. On the other hand, the groups of semi-durable (-3.1%) and non-durable (-0.3%) posted negative figures in March, influenced at a large extent by items plastic footwear for women, mattresses and trousers for women; and medicines, respectively.

Cumulative index in the year changes 0.4%

The industrial sector recorded a positive change of 0.4% in the cumulative index for the January-March 2014 period, against the same period of the previous year. Sixteen out of the 26 sectors surveyed posted positive rates. The sectors of computer equipment, electronic and optical products (21.2%), mining and quarrying industries (3.7%) and food products (2.4%) exerted the highest positive influences on the industry average. Other relevant positive contributions came from the sectors of pharm chemicals and pharmaceuticals (8.2%), rubber and plastic products (3.4%) and wearing apparel and accessories (3.7%). Conversely, the main impacts among the ten activities that reduced the production were registered in motor vehicles, trailers and bodies (-6.3%), fabricated metal products (-7.7%) and electrical machinery and apparatus (-4.6%).

Among the major economic categories, the profile of the results of the first quarter of 2014 showed more dynamism for durable consumer goods (3.4%) and semi and non-durable consumer goods (2.8%), particularly leveraged by the increased manufacturing of brown goods, in the first segment, and medicines and motor gasoline, in the second. On the other hand, capital goods (-0.9%) and intermediate goods (-0.6%) registered the negative figures in the cumulative index in the year.