This was the second consecutive positive result of the seasonally adjusted index, which led to expansion of 1.8% between September and November 2006. In comparison with November 2005, the increase was 4.2%. Consequently, the accumulated growth of industry in the period January-November 2006 was 3.1%, more than the 2.9% accumulated until October. The annualized rate (accumulated in the last 12 months) kept the acceleration trend, having changed from 2.8% in October to 3.0% in November.

The increase of 0.8% observed from October to November caused the level of production to reach its record level. There was increase in 14 of the 23 which have seasonally adjusted series, being particularly influencing, in this case, the contribution of petroleum refining and alcohol production (4.6%). These two subsectors grew again after four consecutive negative rates and accumulated loss of 9.5%.

Also important was the positive contribution of other transportation equipment (10.1%), beverages (4.9%), other chemical products (1.8%) and mining and quarrying industry (2.2%). On the other hand, the main negative pressures came from automotive vehicles (-1.0%); metallurgy (-0.7%); perfumery, soaps and cleaning products (-1.4%) and apparel (-2.1%).

Still in comparison with October results, the segment of capital goods (2.2%) had the best rhythm of growth among the categories of use, overcoming two consecutive months of falling rates, which led to accumulated loss of 2.4%. The production of intermediate goods (1.6%), the most relevant segment in industry, was also above the overall average (-0.8%). The segments of consumer goods, both durable (-0.1%) and semi-durable and non-durable (-0.6%) fell, after positive rates in October (3.7% and 0.4%, respectively).  

In comparison with the same month in 2005, the industrial production has had positive results for five consecutive months. In relation to November/05, production increased in most (21) of the 27 subsectors surveyed, and the most relevant positive impacts on the general index were office machines and computer equipment (54.5%), machinery and equipment (9.6%) and mining and quarrying industry (8.8%). In these activities, the main highlights were, respectively, computers and monitors; microwave ovens and refrigerators; and iron ore and petroleum.

It is also worth mentioning the positive performances of pharmaceutical industry (10.99%), of beverages (8.8%), of other chemical products (4.1%) and of office machines and communication equipment (7.4%). Among the subsectors with falling production, the main contributions to the overall rate were editing and printing (-2.1%) and wood (-7.2%).  

Still in comparison with November 2005, all the categories of use had positive rates, and the highlight was durable consumer goods (10.4%), which increased for the second consecutive month, and capital goods (7.9%). The production of intermediate goods (3.2%) and semi-durable and non-durable consumer goods (2.8%) also increased, but below average (4.2%).

Considering durable consumer goods, besides the progress of the production of cars (3.0%), the highlight was the item cell phones (29.5%), and the group household appliances (14.3%). In the latter, the main contribution came from the subsector of appliances of the "white category", etc (22.3%).

The performance of capital goods, which has had five consecutive results, is principally based on capital goods for mixed use (17.5%) and for industrial use (13.9%), followed by capital goods for electricity (7.2%) and for construction (0.9%). In the other subsectors, the rates remain negative: agricultural capital goods (-7.7%) – with 27 consecutive months of falling rates – and capital goods for transportation (-2.7%).

The results for production of intermediate goods (3.2%) were positive in almost all the subsectors, except elaborated fuels and lubricants (-3.1%). In this category of use, the major positive impact came from elaborated industrial inputs (2.8%).  It is also worth mentioning the good performance of the subsector basic industrial inputs (12.9%) reflecting, above all, the increased extraction of iron ore. The groups of inputs for construction (4.1%), which had its seventh consecutive rate, and of packages (1.9%) also grew.

Finally, in the segment semi-durable and non-durable consumer goods (2.8%), the main positive highlight was the subsector of elaborated food products and beverages for domestic consumption (3.7%). In second place was the subsector of other non-durable goods (3.2%). The group of semi-durable goods is the only one with negative results in this category of use.

There was increase of 3.1% of the indicator accumulated from January to November 2006, in comparison with the same period in 2005, reaching 21 subsectors. In the analysis by activity, in terms of impact on the overall index, the leader was office machines and computer equipment (52.8%). The main highlights in this case were the items computers and monitors.

Other relevant positive contributions were those of mining and quarrying industry (7.3%), because of the extraction of iron ore and petroleum; of electric machines, appliances and material (10.4%), especially due to the increase of production of transformers; of food products (2.0%), due to the increase of the production of crystallized sugar; of machinery and equipment (3.8%), because of the items refrigerators and compressors. On the other hand, the negative pressures also came from other chemical products (-1.3%), wood (-7.2%0 and apparel (-4.8%).

Still in this type of comparison, all the indexes by category of use had positive rates and confirm the pattern of expansion observed throughout 2006, with more dynamism for the sectors of durable consumer goods (7.3%) and capital goods. The former, due to he expansion of consumer credit and the latter, due to the expansion of the subsectors of computer science and electric appliances. The production of semi-durable and non-durable consumer goods (2.9%) remains close to the index of industry, whereas intermediate good (2.1%) is the only subsector with a performance below average.

In summary, the indexes for November 2006 confirmed the signs of slight recovery of the rhythm of industrial activity. With these results, the quarterly moving average (trend indicator), which had positive change of 02.% in the quarters ended in October and November, still shows slight increase in comparison with the previous month since April 2006. The percentage of increase accumulated in this period was 2.0%. Also accumulated since April, the quarterly moving average for the sector of capital goods increased 3.1%. The same indicator is also positive for intermediate goods (1.1%) and semi-durable and non-durable consumer goods (0.2%). Durable consumer goods (-2.8%) has faced deceleration. 

_______________________________________

¹Refrigerators, freezers, stoves and washing machines.