In the seasonally adjusted series, the national industrial output advanced 0.7% in July 2014 over the immediately previous month, halting five consecutive months of negative figures, when it registered a cumulative loss of 3.5%. Compared with the same month of the previous year in the series not seasonally adjusted, the overall industry registered a fall of 3.6% in July 2014, the fifth negative rate in a row in this kind of comparison. As a result, the industrial sector recorded a cumulative drop in the seven months of the year (-2.8%), deepening the decline reported in the first quarter of 2014 (-2.6%). By declining 1.2% in July 2014, the annualized rate - cumulative indicator in the last 12 months - maintained the downward trend started last March (2.0%) and posted the highest negative figure since January 2013 (-1.5%).

The complete publication of the survey can be accessed at www.ibge.gov.br/english/estatistica/indicadores/industria/2014/pimpfbr/.

20 out of 24 sectors surveyed record growth in July

The growth of 0.7% in the industrial activity between June and July showed the predominance of positive figures, reaching three out of the four major economic categories and 20 out of the 24 sectors surveyed. Among the activities, the main positive influences were registered by computer equipment, electronic and optical products (44.1%) and motor vehicles, trailers and bodies (8.5%), the former posting the highest expansion since the beginning of the time series and halting four consecutive months of negative rates, when it registered a cumulative drop of 38.1%; and the latter eliminating part of the cumulative loss of 18.1% between May and June. Other important positive contributions to the overall industry came from the sectors of other transportation equipment (31.3%), machinery and equipment (7.0%), electrical machinery and apparatus (13.1%), other chemicals (2.4%), wearing apparel and accessories (8.6%), pharmaceuticals and pharm-chemicals (5.0%), textiles (5.9%), non-metallic minerals (2.5%) and mining and quarrying industries (1.1%). Except for the last sector, which recorded a positive rate for the fifth month in a row, the other activities posted negative figures in June. Among the four sectors that reduced the production in July, the most important performances to the overall average were food products (-6.3%) and coke, petroleum products and biofuels (-2.6%). The former sector halted three months of increasing production, period in which it recorded an expansion of 6.9%, and the latter offset part of the advance of 6.5% reached in the previous month.

Still comparing with the immediately previous month, durable consumer goods registered the sharpest expansion in July among the major economic categories. By advancing 20.3%, it interrupted four consecutive months of negative rates, when it registered a cumulative loss of 30.9%. The segment of capital goods (16.7%) reversed four consecutive months of falling production, recording a cumulative loss of 19.2% in this period. Also posting a positive figure in July, the sector producing semi and non-durable consumer goods (0.7%) repeated the index of the overall industry (0.7%) and offset part of the decline of 1.4% registered in the previous month. The segment of intermediate goods (-0.3%) registered the only negative rate in July 2014 and recorded the fourth consecutive month of decreasing production, posting a cumulative reduction of 1.6% in this period.

Quarterly moving average declines (-0.5%)

Still in the seasonally adjusted series, the evolution of the quarterly moving average index for the overall industry declined (-0.5%) in the quarter ended in July, against the previous month, after having also recorded negative rates in April (-0.4%), May (-0.7%) and June (-0.9%). Among the major economic categories, durable consumer goods (-4.4%) registered the sharpest drop in July and maintained the downward trend started last March. The segments of intermediate goods (-0.5%) and capital goods (-0.3%) also recorded negative rates in July, the former maintaining the negative behavior started in May; and the latter recording the fourth month of drop in a row. On the other hand, the sector producing semi and non-durable consumer goods (0.1%) was the only one to increase the production in July, thus maintaining the predominantly positive behavior along 2014.

Industrial output falls 3.6% compared with July 2013

Compared with the same month a year ago, the industrial sector dropped in July 2014 (-3.6%). Three out of the four major economic categories and 16 out of the 26 sectors reduced the production. By declining 22.8%, the activity of motor vehicles exerted the highest negative influence on the industry average. Other relevant negative contributions came from the reduced manufacturing of basic metals (-9.0%), fabricated metal products (-13.2%), machinery and equipment (-7.9%), rubber and plastic products (-10.8%), electrical machinery and apparatus (-8.6%) and food products (-1.2%). Among the ten activities that increased the production, the main impacts were registered in mining and quarrying industries (5.6%), coke, petroleum products and biofuels (2.2%), pharmaceuticals and pharm-chemicals (8.9%), printing and reproduction of recorded media (20.5%) and other transportation equipment (9.8%).

Still comparing with the same month a year ago, durable consumer goods (-13.7%) registered the steepest decline among the major economic categories in July 2014. The segments of capital goods (-6.4%) and intermediate goods (-3.6%) recorded the other negative figures in July, whereas the sector producing semi and non-durable consumer goods posted the only positive rate (0.6%).

The sector producing durable consumer goods declined 13.7% in the monthly index of July 2014, registering the fifth consecutive negative figure in this type of comparison, though less intense than that in the previous month (-33.7%). This sector was particularly pressed by the reduced manufacturing of cars (-25.0%). Other important negative influences came from brown goods (-14.7%), due to the reduced manufacturing of TV sets, and from other household appliances (-9.8%) and furniture (-6.3%). Conversely, the main positive influences were reported in the groups of white goods (6.2%) and motorcycles (15.5%).

By declining 6.4% in July 2014, the sector of capital goods recorded the fifth consecutive negative figure in the monthly index, though well less intense than that in the previous month (-21.1%). Concerning the formation of the index in July, this segment was influenced by the decline reported by the majority of its groups, highlighted by the reduction of 18.6% in capital goods for transportation equipment. The other negative rates were registered by capital goods for industrial use (-9.9%), for agricultural purposes (-9.2%) and for construction (-13.9%), whereas capital goods for mixed use (30.6%) and for electricity (7.6%) recorded the positive figures in July 2014.

The reduced production of intermediate goods (-3.6%), which registered the fifth 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 (-21.9%), basic metals (-9.0%), fabricated metal products (-15.4%), rubber and plastic products (-11.5%), machinery and equipment (-9.4%), non-metallic minerals (-4.0%), food products (-2.1%), other chemicals (-2.2%) and textiles (-3.5%), whereas the positive pressures came from mining and quarrying industries (5.6%), coke, petroleum products and biofuels (5.0%) and  pulp, paper and paper products (0.6%). It is worth mentioning the negative figures posted by the groups of inputs for civil construction (-7.6%), which registered the fifth consecutive drop in this type of comparison, and of packaging (-2.6%), after also declining last June (-3.6%).

By advancing 0.6% in July 2014 over the same month a year ago, the segment of semi and non-durable consumer goods recorded the only positive figure among the major economic categories and reversed the decline of 3.2% in the previous month. The performance in July was largely influenced by the growth coming from the groups of other non-durable (9.7%) and food and beverages for domestic consumption (0.2%). The groups of semi-durable (-4.6%) and fuels (-4.0%) posted the negative figures in July.

Industrial output falls (-2.8%) in the cumulative rate of 2014

Considering the cumulative index in the seven months of 2014, against the same period a year ago, the industrial sector dropped 2.8%. Negative rates prevailed in three out of the four major economic categories, 18 out of the 26 activities, 55 out of the 79 groups and 63.1% of the 805 products surveyed. The main negative impact was reported in the sector of motor vehicles, trailers and bodies (-17.7%). Other relevant negative contributions to the overall industry came from the sectors of fabricated metal products (10.8%), basic metals (-5.6%), machinery and equipment (-5.3%), electrical machinery and apparatus (-7.9%) and other chemicals (-3.7%). Among the eight activities that increased the production, the main influences were recorded in mining and quarrying industries (4.4%), food products (1.5%), computer equipment, electronic and optical products (7.9%), coke, petroleum products and biofuels (1.7%) and pharmaceuticals and pharm-chemicals (5.8%).

Among the major economic categories, the profile of the cumulative index in the first seven months of 2014 showed less dynamism for durable consumer goods (-9.0%) and capital goods (-7.8%), especially pressed by the reduced manufacturing of cars (-17.6%), in the former, and of capital goods for transportation equipment (-16.0%), in the latter. The segment of intermediate goods (-2.5%) also posted a negative figure in the cumulative index in the year, though slightly less intense than the national average (-2.8%). By positively changing 0.4%, the sector producing semi and non-durable consumer goods registered the only positive rate.