Increase of 1.6% in comparison with the April fgure, considering a seasonally adjusted series, is the highest since last December (2.55). There was also increase of 4.8% in relation to May 2005, with accumulated rates of 3.3% in the year and 2.6% in the last 12 months.

In May, the industrial production grew in different types of comparison: in the seasonally adjusted series, there was increase of 1.6% in relation to April; in comparison with May 2005, increase of 4.8%. The positive result accumulated in the year changed from 2.9%, in April, to 3.3%, in May. The figure accumulated in the last 12 months was the same as in April (2.6%).

The increase in the rhythm of production between April and May reached 13 of the 23 subsectors with seasonally adjusted results. It is worth mentioning the hike of automotive vehicles (6.2%), whose results are followed by those of machinery and equipment (3.1%) and food products (2.5%). The most relevant negative contributions came from electronic material and communication equipment (-7.9%) and other chemical products (-2.7%). 

Among the categories of use, still in comparison with the previous month, the subsector of intermediate goods had the highest growth rhythm (1.9%) and had a hike for the third consecutive month, having accumulated 2.3% in the year. Also above the national average (1.6%), the segment of capital goods advanced 1.8% in comparison with April. The production of semi-durable and non-durable consumer goods (0.4%), although below average, increased for the second consecutive month, accumulating 1.8% in these two months. Durable consumer goods, after increase of 1.6% in April, fell by 0.3% in May. 

The growth of the industrial activity in May had a positive impact on the quarterly moving average, which increased by 0.5% between the quarters ended in April and in May. Among the categories of use, the sector of intermediate consumer goods is the only one which grew (0.8%). The segments of capital goods (-0.1%) and semi-durable and non-durable consumer goods (-0.2%) indicate slight decrease and the production of durable consumer goods shows loss of 1.8% between the two quarters. 

The increase of 4.8% in relation to May 2005 reflected the growth of the majority (23) of the 26 subsectors surveyed. It can be noticed that there was one more working day in May 2006, differently from May last year. Among the industries with increase of production, the major impacts on the overall index, by order of importance, were: automotive vehicles (9.4%), food products ( 6.5%), office machines and computer equipment (49.3%) and mining and quarrying (6.7%). In these subsectors, the products which most influenced the index were: automobiles and pieces for the engine; crystallized sugar , and preserved fish; computers and monitors; iron ore and petroleum. Of the four falling activities, the one which most affected the overall index was electronic material and computer equipment (-8.0%), which had the fall of the production of cell phonesas the main highlight.   

Among the categories of use, still in comparison with May 2005, the segment of consumer goods had the highest rate (8.1%), supported by the increase of the production of automobiles (14.2%) and household appliances (13.5%).This result could be higher, if it were not for the fall of the production of mobile telephones (-17.4%). The production of acpital goods surpassed by 5.9% that of May last year, especially due to the predominantly positive results of its subsectors: capital goods for electricity (38.1%), for contruction (24.6%), for transportation (7.2%) and capital goods for mixed use (3.3%).

The falling categories of use were: agricultural capital goods (-8.8%), which keep a sequence of 21 consecutive months of fall, and machinery and equipment for industrial use (-0.8%). The segment of semi- durable and non-durable consumer goods increased by 4.9%. It was affected by the subsectors of food products and beverages for domestic use (6.4%) and other non-durable goods (5.2%), having the items soft drinks and newspapers, respectively, as the main highlights.

The production of intermediate goods grew by 4.0%, with positive rates in all its subsectors. The highlights were complex industrial inputs (2.2%), pieces and accessories for industrial transportation (7.3%), basic industrial inputs (6.2%), food products and beverages for the industry (8.7%) and complex fuels and lubricants (4.4%). The main items accounting for this performance are: laminated steel items; motor pieces or accessories; iron ore; crystallized sugar and diesel. It is also worth mentioning the favorable performance of inputs for construction (7.5%). The subsector of packaging (0.4%) had practically the same production as in May 2005.

Hike of the rate accumulated in the year reflects the performance of 20 subsectors

The growth of 3.3% accumulated in the period January – May, versus the equivalent period in 2005, affected 20 subsectors and four categories of use. Among the activities, the leader is still office machines and computer equipment (59.8%). It is also worth mentioning mining and quarrying industry (10.0%); electric machines, appliances and material (15.0%) and electronic material and communication equipment (10.0%). Among the falling subsectors, other chemical products (-1.7%) and wood (-8.5%) were the main negative contributions.

The analysis of the rate accumulated in the year, in terms of category of use, shows that durable consumer goods (10.2%) presented the highest rate, followed by capital goods (6.6%), both with a performance above the national average (3.3%). The segment of semi-durable and non-durable consumer goods grew by 3.0%; the segment of intermediate goods, by 2.1%.

In summary, May results show the recuperation of the industrial activity. This month, industry shows its highest level of production (seasonally adjusted series), surpassing the last record (December 2005). According to the quarterly moving average, the hike observed in April (0.3%) increased in May (0.5%). This gradual recuperation was a consequence of better credit offers, of the increase of the real average income and of the fall of inflation, three factrs which have been stimulating domestic consumption. The growth of the segment of capital goods and inputs for construction is a sign of increase of investments. In relation to the impact of external sales over the performance of industry, it is observed that the segments which export more, contrary to what was observed in previous years, have grown at levels below the overall average (see the graph below).