Industrial production increased 1.1% in August, compared to July, in the series free of seasonal adjustments, being the sixth positive rate or this type of comparison, which accrues an expansion of 7.8% in this period.  Compared to the same periods of the previous year, the indexes are also positive: 13.1% compared to August 2003, the twelfth positive rate in a row, and 8.8% in the accrued January-August period.  This increase in the production rhythm also reflects on the accrued indicator’s trend over the last twelve months, which passed from 5.1% in July to 6.5% in August.

With these results, the average moving quarterly index, in August, registered the highest level since the start of the series.  In the last months, the industrial performance has been characterized by the leadership of the capital goods and durable consumer goods sectors, with a growth rhythm that was well above the industrial average.  The performance of intermediate goods remained to the average, while the production of semi-durable and non-durable consumer goods registered more moderate growth.

Machines and equipment, automobiles and household appliances lead the expansion

The increase that was observed in the passing from July to August (1.1%) maintains a sequence of six positive rates in this type of comparison and reflects the expansion that was registered in twelve out of twenty-three activities that have their series adjusted on a seasonal basis, being particularly significant in oil refining and alcohol production (1.1%); other chemical products (1.8%); electronic material and communications equipment (4.8%) and machines and equipment (2.2%).  The areas that exerted the greatest negative pressure were metal products (-3.6%), textiles (-2.7%) and tobacco (-3.9%).

In the division by categories of use, the highlights are capital goods, that advanced 2.3% between last July and August, and durable consumer goods (2.2%).  Since March 2004, both sectors registered positive results, accumulating respective rates of 14.0% and 17.0% in this period.  The production of intermediate goods (0.3%), the area with the greatest weight in the industrial structure, demonstrated growth since January, accruing 7.6% in the period of growth.

In contrast to this movement of increase in the level of activity, the production of semi-durable and non-durable consumer goods registered a decrease in the passing from July to August (-0.3%).  It is the second negative result in a row, which leads to a loss of 1.2% in the comparison between August 2004 and June 2004.

Growth has generalized profile compared to August of last year

Compared to August 2003, the increase of 13.1% that was registered in the industry’s total has a generalized profile, since it reaches twenty-five out of twenty-seven surveyed activities and all categories of use.  The increases that yielded the greatest pressure on the global result were exerted by the industries of automotive vehicles (45.6%), machines and equipment (30.5%), electronic materials and communications equipment (31.3%) and other chemical products (9.3%).  In these areas, the main impacts that were highlighted were, not only for items that are typically associated to durable consumer goods, such as automobiles and household appliances, but also those that are related to the capital goods segment (telephony equipment), and to intermediate goods (herbicides).  Oil refining and alcohol production (-1.8%) and pharmaceutical products (-1.4%) were the only activities that had a decrease in production.  The growth's amplitude was also confirmed by the positive results that were registered in 67 out of 76 sub-sectors, since 58 registered positive rates in July.

Also in comparison to August 2003, durable consumer goods (36.2%) and capital goods (32.3%) maintained a rhythm above the industry's global average (13.1%).  The production of intermediate goods registered a more moderate growth (6.3%).

The evolution of the quarterly moving indexes, established from the series that are free from seasonal influences, confirms the maintenance of the expansion trend in the industrial activity that started in March.  This movement reaches the industry in a general form, such as the durable goods sectors, with a strong inter-industrial relation, and for capital goods, associated to investments, registering greater dynamism.

Industry grows 8.8% from January to August

The accrued indicator for the period of January-August reached 8.8%, with extraction growing 1.2% and the manufacturing industry 9.2%.  Among industrial activities, positive results that reached most (24) sectors in the manufacturing industry also predominated, with a highlight for the performance of automotive vehicles (30.2%) and machines and equipment (18.8%), mainly, due to the greater production of automobiles and domestic refrigerators.  In this type of comparison, only pharmaceuticals (-8.7%) and the footwear industry (-0.6%) remained with negative rates.

The division by categories of use demonstrates results that confirm the greater dynamism of the capital goods (26.2%) and durable consumer goods (26.0%) production sectors, a standard that signaled the recovery of the industry that started in the second half of last year.  In the first segment, an increase of a general nature was noted in the production of machines and equipment, indicating a resumption of investments in different sectors.  The indexes for the capital goods sub-sectors demonstrate a 16.7% growth rate in the production of industrial machines and equipment; 15.0% for agricultural machines and equipment; 36.5% for construction machines and equipment; 26.2% for transport equipment; and 27.8% in the production of capital goods for mixed use.  In the sector of durable consumer goods, in addition to the already-mentioned advance in automotive industry, there has been a positive trend in the production of household appliances, that increased by 25.1%, a rate that reflects the favorable performance of three sub-sectors: brown-line household appliances (36.6%), of the white-line (26.3%) and of other household appliances (12.8%).  The continuing improvement of credit conditions, the greater stability of the labor market and the performance of exports were the factors that sustained this performance.

Still considering the accrued indicator for January-August, the production of intermediate goods registered a rate of 7.4%, a rhythm that is close to the industry's total.  With an increase of 6.1%, the sub-sector of elaborated industrial inputs had the greatest impact on the category, with a highlight for the production of cellulose.  The 21.7% expansion in the manufacturing of parts and accessories for transport equipment should be noted, reflecting the increase in production of the automotive industry.  The civil construction inputs group accrued 5.8% in the January-August period and the total for packages (0.4%) registered the first positive rate in this type of comparison.

The result for the industry of semi-durable and non-durable consumer goods (3.1%) was mainly influenced by elaborated food and beverages (5.0%).  The carbonates (-5.4%) were the only component of this category that registered a retraction.