In the seasonally adjusted series, the industrial output in Brazil declined 1.4% in June 2014 over the immediately previous month,  registering the fourth consecutive negative figure in this type of comparison and a cumulative loss of 3.4% in this period. In the seasonally unadjusted series, the overall industry reduced 6.9% compared with the same month a year ago, recording the fourth consecutive negative rate and the most intense since September 2009 (-7.4%). As a result, the second quarter index (-5.4%) and the cumulative index in the first six months of the year (-2.6%) posted negative figures, both against the same periods in the previous year. By declining 0.6% in June 2014, the annualized rate, cumulative indicator in the last 12 months, registered the first negative figure since March 2013 (-0.9%) and showed a clear reduction in the pace against the figures recorded in March (2.0%), April (0.7%) and May (0.2%).

The complete publication of the survey and all its results can be accessed on page https://www.ibge.gov.br/english/estatistica/indicadores/industria/2014/pimpfbr/.

Industrial Output Indicators by Major Economic Categories
Brazil - June 2014

Source: IBGE, Diretoria de Pesquisas, Coordenação de Indústria
*Seasonally-adjusted series

18 out of 24 sectors surveyed drop in June

The drop of 1.4% in the industrial activity between May and June showed the predominance of negative figures, reaching the four major economic categories and 18 out of the 24 sectors surveyed. Among the activities, the main negative influences were registered in motor vehicles, trailers and bodies (-12.1%) and computer equipment, electronic and optical products (-29.6%). Other important negative contributions to the industry overall came from the sectors of machinery and equipment (-9.4%), wearing apparel and accessories (-10.0%), rubber and plastic products (-5.6%), other transportation equipment (-12.3%), electrical machinery and apparatus (-7.4%), toiletries, soaps, detergents, cleaning and personal care products (-3.1%), non-metallic mineral products (-3.4%) and textiles (-6.7%). Among the six sectors that increased the production in June, the most important performances to the overall average were coke, petroleum products and biofuels (6.6%), food products (2.1%) and beverages (2.5%).

Considering the major economic categories, still comparing with the immediately previous month, durable consumer goods registered the sharpest fall since the beginning of the time series. By declining 24.9%, it recorded the fourth consecutive negative rate in this type of comparison, a cumulative loss of 33.3% in this period. The segment of capital goods (-9.7%) recorded the fourth consecutive month of decreasing production, posting a cumulative loss of 17.9% in this period. By reducing 1.3%, the sector producing semi and non-durable consumer goods offset the cumulative expansion of 1.1% between April and May. The segment of intermediate goods (-0.1%) registered the most moderate negative rate in June 2014, yet recording the third consecutive month of decreasing production and posting a cumulative reduction of 1.2% in this period.

Quarterly moving average declines 0.9%

Still concerning the seasonally adjusted series, the evolution of the quarterly moving average index for the overall industry declined 0.9% in the quarter ended in June, against the level of the previous month, and strengthened the drops registered in April (-0.4%) and May (-0.7%). Among the major economic categories, still in relation to the movement of this index on the margin, durable consumer goods (-10.5%) and capital goods (-4.9%) registered the most intense drops in June. The segments of intermediate goods (-0.4%) and semi and non-durable consumer goods (-0.1%) also recorded negative indexes in June 2014.

Industrial output declines 6.9% compared with June 2013

Compared with the same month last year, the industrial sector fell 6.9% in June 2014. Negative figures prevailed, since all four economic categories and 21 out of the 26 sectors declined the production.

By declining 36.3%, the activity of motor vehicles, trailers and bodies, exerted the highest negative influence on the industry average, pressed, at a large extent, by the reduced manufacturing of cars, trucks, tractor trucks for trailers and semi-trailers, car pieces and vehicles for transportation of goods. Other relevant negative contributions to the national overall came from the reduced production of machinery and equipment (-14.2%), basic metals (-12.7%), computer equipment, electronic and optical products (-25.1%), fabricated metal products (-15.6%), electrical machinery and apparatus (-18.4%), rubber and plastic products (-10.4%), other chemicals (-6.3%) and other transportation equipment (-21.2%). Among the five activities that increased the production, the main impacts were recorded in coke, petroleum products and biofuels (9.9%), food products (7.4%), mining and quarrying industries (2.9%) and beverages (9.4%).

Still comparing with the same month a year ago, durable consumer goods (-34.3%) and capital goods (-21.1%) registered the steepest declines among the major economic categories in June 2014. The segments of semi and non-durable consumer goods (-3.0%) and intermediate goods (-2.9%) also posted negative figures in June, though less intense than the national average (-6.9%).

The sector of durable consumer goods declined 34.3% in the monthly index of June 2014, recording the fourth consecutive negative result in this type of comparison and the sharpest fall since December 2008 (-39.1%). In June, this sector was particularly pressed by the reduced manufacturing of cars (-35.1%), influenced, at a large extent, by collective vacations in a number of producing units. Other important negative impacts came from motorcycles (-47.3%); brown goods (-41.0%), due to the reduced manufacturing of TV sets; white goods (-32.4%), due to the contraction in refrigerators and freezers for domestic use; other household appliances (-29.3%) and furniture (-16.4%).

By declining 21.1% in June 2014, the sector of capital goods also registered the fourth consecutive negative result in the monthly index and posted the most intense drop since August 2009 (-22.4%). In the formation of the June´s index, this segment was influenced by the decline in the majority of its groups, highlighted by the reduction of 31.6% in capital goods for transportation equipment, mainly pressed by the reduced manufacturing of trucks, tractor trucks for trailers and semi-trailers, vehicles for transportation of goods, trailers and semi-trailers and passenger rail cars. The other negative rates were registered by capital goods for industrial use (-11.8%), for agricultural purposes (-15.5%) for mixed use (-8.5%) and for construction (-16.3%), whereas capital goods for electricity (8.4%) recorded the only positive figure in June 2014.

By declining 3.0% compared with the same month a year ago, the segment of semi and non-durable consumer goods reversed the advance of 0.8% registered in the previous month. The performance in June was largely influenced  by the declines coming from the groups of semi-durable (-11.4%), food and beverages for domestic consumption (-3.0%) and non-durable (-5.1%). On the other hand, the group of fuels (12.1%) posted the only positive figure in June, leveraged by the increased production of ethyl alcohol and motor gasoline.

The reduced production of intermediate goods (-2.9%), which registered the fourth consecutive negative figure compared with the same month a year ago, was mainly explained by the retraction of the products associated with the activities of motor vehicles, trailers and bodies (-33.4%), basic metals (-12.7%), fabricated metal products (-17.9%), other chemicals (-6.3%), rubber and plastic products (-10.4%), non-metallic mineral products (-6.1%), textiles (-10.9%), machinery and equipment (-7.5%) and pulp, paper and paper products (-3.1%), whereas the positive pressures came from food products (21.6%), coke, petroleum products and biofuels (9.0%) and mining and quarrying industries (2.9%). Still in this category, it is worth mentioning the negative figures registered by the groups of inputs to civil construction (-11.9%), which recorded the most intense decline since the beginning of the time series and the fourth consecutive drop in this type of comparison, as well as by packaging (-2.7%), which reversed the advance of 1.0% reported last May.

Cumulative index in the first semester drops -2.6%

Considering the cumulative index at the end of the first semester of 2014, against the same period a year ago, the industrial sector dropped 2.6%. Negative rates prevailed in three out of the four major economic categories and in 18 out of the 26 activities surveyed. The main negative impact was reported in the sector of motor vehicles, trailers and bodies (-16.9%). Other relevant negative contributions to the overall industry came from the sectors of fabricated metal products (-10.1%), basic metals (-5.0%), machinery and equipment (-4.5%), electrical machinery and apparatus (-7.9%) and other chemicals (-4.1%). Among the eight activities that increased the production, the main influences were recorded in mining and quarrying industries (4.1%), food products (2.1%), coke, petroleum products and biofuels (2.1%) and computer equipment, electronic and optical products (7.3%).

Among the major economic categories, the profile of the cumulative index in the first six months of 2014 showed less dynamism for durable consumer goods (-8.6%) and capital goods (-8.3%), especially pressed by the reduced manufacturing of cars (-16.7%), in the former, and of capital goods for transportation equipment (-15.1%), in the latter. The segment of intermediate goods (-2.2%) also posted a negative figure in the cumulative index in the year, though slightly less intense than the national average (-2.6%). On the other hand, the sector producing semi and non-durable consumer goods (0.3%) recorded the only positive rate, mainly leveraged by the increased manufacturing of medicines, motor gasoline and ethyl alcohol.