In the seasonally adjusted series, the industrial output declined 0.6% in May 2014 over the immediately previous month, registering the third consecutive negative rate in this type of comparison and recording a cumulative loss of 1.6% in this period. Compared with the same month of the previous year in the series not seasonally adjusted, the overall industry registered a fall of 3.2% in May 2014, the third negative result in a row in this kind of index. As a result, the industrial sector posted a cumulative drop of 1.6% in the first five months of the year, reversing the expansion of 0.5% registered in the first quarter of 2014. By advancing 0.2% in May 2014, the annualized rate, cumulative indicator in the last 12 months, recorded a clear reduction in the growth pace against the figures of March (2.0%) and April (0.7%). The complete publication can be accessed on www.ibge.gov.br/english/estatistica/indicadores/industria/pimpfbr/default.shtm.

*Seasonally adjusted series

Compared with April, 15 out of 24 sectors surveyed reduce production

The drop of 0.6% in the industrial activity between April and May showed the predominance of negative figures, reaching three out of the four major economic categories and 15 out of the 24 sectors surveyed. Among the activities, the main negative influences were registered by coke, petroleum products and biofuels (-3.8%) and motor vehicles, trailers and bodies (-3.9%), the former offsetting part of the advance of 6.2% recorded between February and April; and the latter pointing to the third consecutive decline, posting a cumulative reduction of 10.8% in this period. Other important negative contributions came from the reduced manufacturing of basic metals (-4.0%), computer equipment, electronic and optical products (-5.0%), electrical machinery and apparatus (-2.1%), furniture (-4.4%) and rubber and plastic products (-1.4%). Among the eight sectors that increased the production, the best performances were registered in mining and quarrying industries (1.4%), food products (1.0%) and tobacco (18.5%). Except for the first sector, which was stable last month (0.0%), the others expanded the production in April: 2.5% and 10.0%, respectively.

Still comparing with the immediately previous month, durable consumer goods registered the sharpest fall in May 2014 among the major economic categories. By declining 3.6%, third negative figure in a row in this type of comparison, it registered a cumulative drop of 9.5% in this period. By also declining more than the overall industry (-0.6%), the segment of capital goods (-2.6%) recorded the third consecutive month of drop, posting a cumulative loss of 7.5% in this period. By reducing 0.9%, the sector producing intermediate goods accelerated the pace of decline against last month (-0.2%). The segment of semi and non-durable consumer goods (1.0%) was the only one to increase the production in May, maintaining the predominantly positive behavior in 2014.

Quarterly moving average changes -0.5%

In the seasonally adjusted series, the quarterly moving average index declined 0.5% in the quarter ended in May, compared with the level reached in the previous month, and extended the drop registered last April (-0.3%). Among the major economic categories, durable consumer goods (-3.3%) and capital goods (-2.6%) recorded the steepest drops in May, accelerating the declines reported last month: -0.4% and -0.7%, respectively. The segment of intermediate goods (-0.3%) also posted a negative index in May 2014, after registering a positive change of 0.2% in March and standing stable in April. The sector producing semi and non-durable consumer goods (0.4%) posted the only positive rate in May and maintained the upward trend started last January.

Industry declines 3.2% against May 2013

In the comparison with May 2013, the drop of 3.2% showed the prevalence of negative figures, since three out of the four major economic categories and 18 out of the 26 sectors declined the production. Among the activities, motor vehicles, trailers and bodies (-20.1%) exerted the highest negative influence, pressed by the reduced manufacturing of cars, tractor trucks for trailers and semi-trailers, trucks, car pieces and vehicles for transportation of goods. Other negative contributions came from basic metals (-10.5%), fabricated metal products (-9.5%), other chemicals (-5.7%), coke, petroleum products and biofuels (-2.4%), machinery and equipment (-3.1%), printing and reproduction of recorded media (-13.4%) and rubber and plastic products (-3.6%). Among the eight activities that increased the production, the main impacts came from mining and quarrying industries (7.6%), food products (2.1%), computer, electronic and optical products (7.8%) and pharm-chemicals and pharmaceuticals (8.1%).

Still comparing with the same month a year ago, durable consumer goods (-11.2%) and capital goods (-9.7%) registered the steepest declines among the major economic categories. The segment of intermediate goods (-2.8%) also recorded a negative figure, yet lower than the national average (-3.2%). By expanding 0.8%, the sector producing semi and non-durable consumer goods was the only one to post a positive figure.

By declining 9.7% in May 2014, the sector of capital goods registered the third consecutive month of negative figures in this type of comparison. This segment was influenced by the decline in the majority of its groups, highlighted by the reduction of 18.1% in capital goods for transportation equipment, pressed by the reduced manufacturing of tractor trucks for trailers and semi-trailers, trucks and vehicles for transportation of goods. The other negative rates were registered by capital goods for industrial use (-4.2%), for agricultural purposes (-2.5%) for construction (-1.7%) and for mixed use (-0.4%), whereas capital goods for electricity (6.9%) recorded the only positive figure in May 2014.

The sector producing durable consumer goods declined 11.2% in the monthly index of May 2014, posting the third consecutive negative figure in this type of comparison. In May, this sector was particularly pressed by the reduced manufacturing of cars (-21.1%). Furniture (-9.1%), other household appliances (-8.1%) and motorcycles (-5.2%) also caused relevant negative impacts. The main positive influences were brown goods (9.8%), leveraged by the increased manufacturing of TV sets and DVD players, and white goods (6.8%), due to the advances registered in stoves, refrigerators or freezers for domestic use and microwave oven.

By declining 2.8%, the segment of intermediate goods recorded the second consecutive negative rate in the monthly index, influenced by products associated with the activities of basic metals (-10.5%), motor vehicles, trailers and bodies (-15.1%), fabricated metal products (-11.6%), other chemicals (-5.7%), rubber and plastic products (-3.6%), coke, petroleum products and biofuels (-2.1%), non-metallic mineral products (-3.0%), machinery and equipment (-5.8%), textiles (-3.9%) and pulp, paper and paper products (-0.4%). The positive pressures came from mining and quarrying industries (7.6%) and food products (3.5%). The group of inputs to civil construction (-5.6%) posted the third consecutive decline in this type of comparison and the group of packaging advanced 0.8%, after declining 1.1% in April.

After decreasing 4.0% last month, semi and non-durable consumer goods rose 0.8% in May 2014. This was explained by the increased production of the groups of other non-durable (3.7%) and food and beverages for domestic consumption (2.6%), leveraged by the increased manufacturing of medicines and promotional material in the former subsector, and of beer, draft beer, chocolate candies and bars, soft drinks, refined sugarcane sugar, fresh or refrigerated beef and concentrated fruit juice in the latter. The groups of fuels (-3.0%) and semi-durable (-3.5%) posted negative figures, pressed by the declines in the production of motor gasoline and ethanol in the former subsector, and of trousers for women, paints, breeches, knitted shorts for women, knitted shirts, plastic and leather footwear for women and mattresses in the latter.

Cumulative index drops 1.6% in 2014

The cumulative index between January and May 2014 fell 1.6%, with three out of the four major economic categories and 17 out of the 26 sectors surveyed registering a decline in the production. The main negative impact was reported by motor vehicles, trailers and bodies (-12.5%), pressed by the reduced manufacturing of approximately 86% of the products surveyed, highlighted by cars, tractor trucks for trailers and semi-trailers, trucks, vehicles for transportation of goods and car pieces. Other relevant negative contributions came from the sectors of fabricated metal products (-8.8%), other chemicals (-3.7%), basic metals (-3.4%), electrical machinery and apparatus (-6.4%) and machinery and equipment (-2.7%). Among the eight activities that increased the production, the main influences came from mining and quarrying industries (4.7%), computer, electronic and optical products (14.7%) and pharm-chemicals and pharmaceuticals (8.9%), leveraged, at a large extent, by the increased production of crude and processed iron ores in the first, of TV sets in the second, and of medicines in the last activity.

Among the major economic categories, capital goods (-5.8%) showed less dynamism, pressed by the reduced manufacturing of capital goods for transportation equipment (-11.8%), highlighted by the losses coming from items tractor trucks for trailers and semi-trailers, trucks and vehicles for transportation of goods. The segments of durable consumer goods (-3.2%) and intermediate goods (-1.8%) also registered negative figures in the cumulative index in the year. The sector producing semi and non-durable consumer goods (1.0%) recorded the only positive rate,  leveraged by the increased manufacturing of medicines, motor gasoline and ethanol.