In the seasonally-adjusted series, the industrial output rose 1.1% in June 2016 compared with the immediately previous month. It was the fourth consecutive positive figure in this type of comparison, registering a cumulative growth of 3.5% in this period. Nevertheless, the industry recovered only part of the loss recorded along 2015 and was still 18.4% below the level record reached in June 2013.

Compared with June 2015, the industry declined 6.0% in the seasonally-unadjusted series. It was the 28th consecutive negative rate in this type of comparison, though the less intense since June 2015 (-2.5%).

The indexes of the industrial sector were also negative at the end of the second quarter of 2016 (-6.7%) and for the cumulative index in the six first months of the year (-9.1%), both of them compared with the same periods in 2015.

Having dropped 9.8% in June 2016, the annualized rate – cumulative indicator in the last 12 months – accelerated the pace of loss against that posted in May (-9.5%) and registered the most intense loss since October 2009 (-10.3%).

Click here to access the complete publication. 

Industrial Output Indicators by Major Economic Categories
Brazil - June 2016

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

18 of 24 sectors surveyed increase production over May

The increase of 1.1% in the industrial activity between May and June 2016 registered a widespread profile of positive rates, reaching the four major economic categories and 18 out of the 24 sectors surveyed.

Among the sectors, the main positive influence came from motor vehicles, trailers and bodies (8.4%). This behavior stepped up the expansion of 5.5% recorded in the previous month. Other important positive contributions came from toiletries, soaps, cleaning and personal hygiene products (4.7%); basic metals (4.7%); wearing apparel and accessories (9.8%); leather products, traveling items and footwear (10.8%); pharm-chemicals and pharmaceuticals (4.4%); and rubber and plastic products (2.4%).

Among the six sectors with dropping production, the most significant performances were food products (-0.7%); beverages (-2.6%); coke, petroleum products and biofuels (-0.6%); and pulp, paper and paper products (-2.0%).

Among the major economic categories, capital goods (2.1%) posted the most intense expansion in June 2016. This was the sixth consecutive positive rate, registering a cumulative gain of 13.9% in this period.

Semi and non-durable consumer goods (1.2%), durable consumer goods (1.1%) and intermediate goods (0.5%) also increased. The first category offset the cumulative loss of 1.9% between April and May. The second expanded 7.2% in the last two months. The third category returned to grow, after declining 0.5% in the previous month.

Quarterly moving average changes 0.6%

The quarterly moving average expanded 0.6% in the quarter ended in June 2016 over the level of the previous month. This happened after increasing 0.8% in May, when the rate interrupted a downward trend started in October 2014.

Among the major economic categories, capital goods (1.8%) registered the most significant advance in June. As a result, it maintained the sequence of positive results since last March, when it interrupted the downward trend started in September 2014.

Durable consumer goods (0.9%) and intermediate goods (0.2%) also rose in June. The former accelerated the magnitude of the growth reported in the previous month (0.5%). The latter recorded the first positive figure since August 2014 (0.3%).

The segment of semi and non-durable consumer goods (-0.2%) posted the only negative figure in June and maintained the upward trend started in March 2016.

Industry declines 6.0% against June 2015

Compared with June 2015, the industry retreated 6.0% in June 2016. A widespread profile of negative results reached the four major economic categories, 20 out of the 26 sectors, 53 out of the 79 groups and 59.0% of the 805 products surveyed. June 2016 (22 days) had one more business day than the same month in the previous year (21).

Among the activities, mining and quarrying industries (-12.5%) and coke, petroleum products and biofuels (-13.2%) exerted the major negative influences. The former was pressed by iron ores, whereas the pressure came from fuel oils, ethyl alcohol, diesel fuel and naphtha for the petrochemical industry in the latter.

Other relevant negative contributions came from food products (-3.3%), fabricated metal products (-12.7%), non-metallic mineral products (-9.9%), motor vehicles, trailers and bodies (-4.3%), other transportation equipment (-18.5%), tobacco products (-23.5%), basic metals (-3.6%), computer equipment, electronic and optical products (-8.2%), machinery and equipment (-2.9%), maintenance, repair and installation of machinery and equipment (-8.7%), furniture (-9.8%) and wearing apparel and accessories (-4.4%).

The activities of other chemicals (2.3%) and leather products, traveling items and footwear (8.9%) exerted the main positive pressures.

Still comparing with the same month a year ago, intermediate goods (-7.6%) and durable consumer goods (-6.9%) registered the steepest declines among the major economic categories. The sectors producing capital goods (-3.9%) and semi and non-durable consumer goods  (-1.9%) also recorded negative figures in June, both declining less than the national average (-6.0%).

The sector producing intermediate goods (-7.6%) posted the 27th consecutive negative rate in the monthly index, maintaining the pace of decline close to that of the previous month (-7.7%). This result was explained by the retreats in mining and quarrying industries (-12.5%), coke, petroleum products and biofuels (-13.3%), food products (-7.0%), motor vehicles, trailers and bodies (-10.4%), fabricated metal products (-11.8%), non-metallic mineral products (-9.9%), basic metals (-3.6%), rubber and plastic products (-2.3%), machinery and equipments (-3.7%), pulp, paper and paper products (-0.7%) and textiles (-0.8%). The only positive pressure was recorded by other chemicals (2.4%). Still in this economic category, typical inputs for civil construction (-8.7%) posted the 28th consecutive decline compared with the same month a year ago, and packaging (-2.8%), the 18th negative rate in a row.

Durable consumer goods (-6.9%) registered the 28th consecutive negative result in this type of comparison, though the less intense since June 2015 (-1.0%). This sector was pressed by the reduced manufacturing of cars (-5.9%) and of brown goods (-11.4%), both still influenced by reduced shifts and collective vacations in a number of producing units. Other important negative impacts came from motorcycles (-28.5%), other household appliances (-8.9%) and furniture (-10.9%). The main positive figure was registered by white goods (19.1%).

The production of capital goods (-3.9%) recorded the 28th consecutive negative rate in the monthly index, though the less intense in this sequence. This segment was influenced by the retreats in the groups of capital goods for industrial use (-8.0%) and for mixed use (-28.1%). The sub-sectors of capital goods for agriculture (14.0%), for electricity (8.4%) and for construction (1.6%) posted the positive rates in June. Capital goods for transportation equipment (0.0%) repeated the level registered in the same month last year.

The production of semi and non-durable consumer goods declined 1.9% in June 2016, recording the second consecutive negative rate and a pace of decline close to that reported in the previous month (-2.0%). This performance was explained by the retreat in the group of fuels (-12.9%), pressed by the reduced production of ethyl alcohol and motor gasoline. The sub-sectors of non-durable (-0.7%) and of food and beverages for domestic consumption (-0.1%) also posted negative rates. The group of semi-durable (1.8%) registered the only positive figure in this category.

Cumulative index in 2016 falls 9.1%

The industrial output dropped 9.1% in the cumulative index for the January-June 2016 period against the same period in the previous year. Widespread negative rates were registered, since the four major economic categories, 23 out of the 26 sectors, 64 out of the 79 groups and 73.3% of the 805 products surveyed reduced their production.

Among the activities, mining and quarrying industries (-14.0%) and motor vehicles, trailers and bodies (-21.2%) exerted the biggest negative influences on the industry average. The former was pressed by iron ores and the latter, by cars, trucks, chassis with engine for buses and trucks, car pieces and vehicles for transportation of goods.

Other relevant negative contributions came from machinery and equipment (-16.0%), coke, petroleum products and biofuels (-5.9%), basic metals (-11.9%), computer equipment, electronic and optical products (-27.0%), fabricated metal products (-15.1%), non-metallic mineral products (-11.9%), rubber and plastic products (-11.1%), other transportation equipment (-22.2%), electrical machinery and apparatus (-13.2%), wearing apparel and accessories (-10.3%), furniture (-14.9%) and textiles (-11.1%).

Among the activities that increased their production in the first six months of 2016, the main influence was exerted by food products (2.0%), leveraged by the advance in the manufacturing of crystallized sugar. The other positive figures were recorded by the sectors of pulp, paper and paper products (2.5%) and pharm-chemicals and pharmaceuticals (1.9%).

Among the major economic categories, the results of the first six months of 2016 was less dynamic for durable consumer goods (-22.2%) and capital goods (-20.1%). The former was pressed by the reduced manufacture of cars (-21.7%) and household appliances (-23.9%) and the latter, of capital goods for transportation equipment (-20.0%). Intermediate goods (-8.8%) and semi and non-durable consumer goods (-2.3%) also registered negative rates in the cumulative index in the year. The former segment recording 9.1% and the latter posting the most moderate decline among the major economic categories.