The industrial production in November grew by 0.6% compared to October,considering seasonally adjusted indexes. In relation to November 2004, the growth was also of 0.6% while in the accumulated January-November 2005, production increased by 3.1%, below the figure of 3.4% observed in October. The annualized rate in the last twelve months stressed the deceleration trend observed in the last months and changed from 4.1% in October to 3.5% in November.

The increase of 0.6%, observed from October to November, shows the favorable performance of 15 among 23 surveyed segments which have seasonally adjusted series. Stood out the industries of food products (2.2%), electrical machines, equipment and materials (5.3%), rubber and plastic (2.9%) and perfumery, soaps and cleaning products (6.1%). The main negative influences came from other chemical products (-1.9%), electronic material and communication equipment (-4.1%), petroleum refining and alcohol production (-1.5%) and tobacco (-9.1%).

Still in the comparison November 2005/ October 2005, in the indexes by categories of use, it can be observed that capital goods reached the highest rate (2.2%). This index was recorded after a fall of 4.2% in the previous month. The production of intermediate goods (0.2%), segment with major participation in the industrial structure, and semi durable and non-durable consumer goods (0.5%) increased for the second consecutive month, accumulating, respectively, gains of 0.3% and 1.1% which, nevertheless, did not neutralize the losses observed in September (-0.7% and –3.7%, respectively). Only the segment of durable consumer goods decreased (-1.4%), after registering the highest increase (2.7%) in October.

The favorable performance of the industrial activity in comparison with the previous month, does not revert the downward trend observed in the quarterly moving average index of the overall industry, which fell by 0.5% in the quarters closed between October and November. This trend reached all the categories of use, with consumer goods showing the major reduction (-2.8%), followed by semi durable and non-durable consumer goods (-0.9%), capital goods (-0.3%) and intermediate goods (-0.1%). This simultaneous reduction in all the categories of use in this type of comparison has been observed since September.

The comparison November 2005/ November 2004 presented increase of 0.6%, with mining and quarrying increasing by 10,5% and manufacturing registering stability (0.1%), after two months of negative rates. Among the 26 surveyed activities in the industry of manufacturing, 13 showed expansion. Electrical machines, equipment and materials (21.1%), pharmaceuticals (16.9%) and office and computer equipment (46.7%) brought the major positive impact over the overall result. In these industries stood out, respectively, the favorable performances of the following products: transformers; remedies; and computers. Among the groups that indicated fall in the production, the ones that most influenced the industrial average were electronic material and communication equipment (-11.5%), machines and equipment (-7.0%) and other chemical products (-3.0%). In these groups stood out, respectively, the decreases in the production of mobile telephones; harvesting machines; and manures and fertilizers.

Regarding the categories of use, still in the comparison with November 2004, the highlights remained with capital goods, which grew by 4.0%, and semi durable and non-durable consumer goods (1.4%), both with a rhythm above the overall average (0.6%). The production of durable goods and intermediate goods indicates a slight negative change (both with –0.1%).

The sector of capital goods maintains a sequence of four consecutive positive results, supported mainly by the performance of capital goods for construction (32.7%), for electricity (56.4%) and for mixed use (3.9%). In the other subsectors, the rates are negative: capital goods for agriculture (-33.5%), capital goods for transportation (-1.0%) and machines and equipment for industrial use (-7.5%). In the segment of semi durable and non-durable consumer goods, the positive highlights came from non–durable consumer goods (5.0%) and food products and elaborated beverages for domestic consumption (3.0%). In these subsectors stood out, respectively, the items: magazines, remedies and soft drinks.

The performance of intermediate goods is a consequence, mainly, of the unfavorable behavior of food products and elaborated beverages for industry (-8.2%), parts and accessories for industrial transportation equipment (-4.4%) and elaborated industrial inputs (-0.7%). These results weakened the positive impacts of expansion in fuels and basic lubricants (17.0%) and in basic industrial inputs (6.3%) over the overall rate of intermediate goods. The negative result observed in packaging (-5.0%) also contributed negatively for the performance of this category of use. Among the consumer durable goods, it could be observed an interruption in the sequence of twenty-seven months of growth standing out the significant influence of the fall in the manufacturing of mobile telephones (-23.4%). Also stood out, although in a lower scale, the fall in the production of household appliances (-4.5%) especially products such as refrigerators, freezers and washing machines whose decrease reached 9.7%.

In the accumulated January-November 2005, compared to a similar period of 2004, the growth of the total of industry was 3.1%, with seventeen activities indicating increase in production. The manufacturing of automotive vehicles (6.9%) maintains the leadership in terms of impact upon the overall index, being the item automobiles the major highlight. Other important positive impacts came from mining and quarrying (10.3%), due to the favorable performance in the area of iron ores and petroleum extraction. Also stood out electronic material and communication equipment (14.7%), mainly due to the expansion in the manufacturing of mobile telephones and television sets; and edition and printing (11.1%), due to the increase in the production of magazines and newspapers. On the other hand, among the ten activities with fall, the one with major impact upon the overall rate continues to be basic metal products (-2.4%).

Still in the accumulated January-November 2005, all the indexes by categories of use showed positive rates and confirmed the pattern of expansion observed during the last year. There was a major dynamism of durable consumer goods (11.2%) and semi durable and non-durable consumer goods (4.6%), stimulated mainly by the expansion of credit and by the increase in the overall wages. It can be pointed out the performance of several typically export sectors, which also sustained the positive behavior in the period. The production of capital goods (3.2%) grows slightly, above the average of industry, supported mainly, by the sub sectors of capital goods for transportation (7.1%), for mixed use (2.9%), for electricity (26.1%) and for construction (30.5%). The sector of intermediate goods, although indicating growth of 1.0%, maintains a downward trend in the last months, being positively influenced by the extractive sectors (iron ore and petroleum).

In summary, the indexes for November 2005 show a slight increase in the productive rhythm of the industry, which for two months indicate positive rates. Since these results do not recover the fall observed from August to September (-2.2%), this mild acceleration in the production, in the months of October and November, does not change the declining trend observed in the quarterly moving average, a trend which is observed in all the categories of use. In the other comparisons, even with positive results, this trend of deceleration in the industrial rhythm can also be observed.