Between December 2006 and January 2007 the industrial production fell in São Paulo (-1.0%), Minas Gerais (-0.9%), Rio Grande do Sul (-1.0%), Pernambuco (-1.5%), Espírito Santo (-2.7%), Paraná (-3.4%) and Ceará (-3.5%). In comparison with anuary 2006, there was decrease in Ceará only. 

Between last January and December, the seasonally adjusted indexes of industrial production by area fell in seven of the fourteen areas surveyed. All the rates were below the national average (0.3%): São Paulo, which has the most important industrial plants, (-1.0%), Minas Gerais (-0.9%), Rio Grande do Sul (-1.0%), Pernambuco (-1.5%), Espírito Santo (-2.7%), Paraná (-3.4%) and Ceará (-3.5%). Among the areas with increase of production, the most significant rates were those of Bahia (10.8%) and Amazonas (9.4%).

 

In the comparison between the months of January 2006 and 2007 (with hike of 4.5% in the country), the regional indexes increased in almost all the areas surveyed. The only exception was Ceará, which had decrease of 5.4%, reflecting the strong negative impact of the sector of petroleum refining and alcohol production, due to interruptions for the solution of technical problems in a big company of the sector. Among the areas with positive rates above the national average were: Goiás (18.4%), Pará (10.6%), Amazonas (8.4%), Bahia (6.3%), Minas Gerais (6.2%), Rio Grande do Sul (6.2%), Pernambuco (5.1%), Northeast region (5.0%) and Espírito Santo (4.7%). Also with positive results, but below the national average were: Paraná (3.2%), São Paulo (3.1%), Santa Catarina (2.3%) and Rio de Janeiro (2.1%).

Considering the national index, the rhythm of growth increased between the fourth quarter of 2006 (3.2%) and the first month of 2007 (4.5%), both compared with similar periods in the previous year. This acceleration reached nine of the fourteen areas surveyed. The changes were more significant in Amazonas (witch reversed the 3.3% fall in the fourth quarter with an increase of 8.4% in January), and in Goiás (with change from 4.4% to 18.4%). The biggest deceleration among the two periods occurred in Ceará (from 8.0% to -5.4%).

Amazonas

The industrial production in Amazonas increased once more in relation to the previous month (9.4%), considering a seasonally adjusted series, after decrease of 1.4% in December. Consequently, the quarterly moving average index increased by 3.6% in the quarters which ended in December and January, after three consecutive negative rates. The accumulated loss in the period was 2.6%.

In comparison with January 2006, the increase was 8.4%, a result significantly higher than the -3.3% of the last quarter of 2006. The indicator accumulated in the last twelve months remains negative (-1.9%).

 

Considering the monthly index (8.4%), which has had its best result since February 2006 (16.6%), the increase of production was a reflection of the increments to five of the eleven activities surveyed. The major positive impacts came from food products and beverages (47.3%), other transportation equipment (37.7%) and machinery and equipment (62.9%). In the first sector, which was benefited by the comparison basis, the increase of the production of powdered or syrup preparations for the manufacturing of beverages accounted for most of the expansion; in the second, the highlights were the increases in motorcycles and bicycles; in the third, microwave ovens and air conditioning appliances were the highlights. On the other hand, the mains negative contribution came from electronic material and communication equipment (-26.5%), which was significantly affected by the manufacturing of television sets and mobile telephones.

Pará

In January, the seasonally adjusted industrial production in Pará increased by 4.4% in comparison with December, after decrease of 4.7% in the previous year. Still considering the seasonally adjusted series, the quarterly moving average index also increased between the quarters ended December and January (1.2%).

 

In comparison with the same month in the previous years, the expansion was 10.6%, with continuation of the two-digit rate of the last semester of 2006 (11.7%). The indicator accumulated in the last twelve months also points to increase (14.2%), the biggest result among the areas surveyed.

 

The comparison January 07/January 06 shows increase of 10.6%, the eighteenth consecutive positive rate, with increase of the production of four of the six industrial subsectors. The most relevant positive contributions were obtained in basic metallurgy (23.7) and mining and quarrying industry (10.7%), mainly due to the increase in the production of aluminum oxide and iron ore, respectively.

 

It is also worth mentioning the positive impacts of food products and beverages (9.2%) and of cellulose and paper (4.1%), among which it is worth mentioning the items soft drinks and toilet paper, respectively. Considering the two sectors with reduced production, the main contribution was wood (-8.3%), affected by the item sawed wood.  

 

Northeast Region

 

In January, the industrial production in the Northeast Region increased by 4.8% in relation to the previous month, after decrease of 4.0% in December. With these results, the quarterly moving average index shows slight positive change (0.1%), in the quarters ended in January and December.

 

In comparison with January 2006, the industry in the Northeast shows expansion of 5.0%, at a higher rhythm than that observed in the last quarter of last year (2.6%). The indicator accumulated in the last twelve months also decreased (3.6%).

 

The monthly indicator of industry increased by 5.0%, with positive rates in six of the eleven subsectors surveyed. The main contributions were those of food products and beverages (10.8%), affected by the increased production of crystallized sugar and beer; and chemical products (10.7%), due to the increase in the production of fertilizers. It is also worth mentioning the positive result observed in metallurgy (10.6%), strongly affected by the increments in the items copper square bars, profiles and bars and non-connected aluminum incrude form. On the other hand, the biggest negative contributions came from textiles (-7.8%), due to the production of textiles and cotton thread; and of footwear and leather articles (-10.2%), due to the reduced production of plastic footwear and leather shoes.

 

Ceará

 

In January, the seasonally adjusted industrial production in Ceará decreased about 3.5% in relation to the previous month, after increasing 1.0% in December. With this result, the quarterly moving average index decreased by 1.1% in the quarters which ended in January and February, and has remained on a downward trend since October last year,  accumulating decrease of 3.2% in this period.

 

In comparison with the same period in the previous year, the industry in Ceará decreased by 5.4% in January. It was the first negative result since December 2005; the indicator accumulated in the previous twelve months increased by 6.9%.

 

In terms of the monthly indicator, the industry of Ceará had retrogression of 5.4%, with negative rates in six of the ten subsectors surveyed. The main negative influence came from petroleum refining and alcohol production (-43.3%), due to technical stops in an important refinery. In this segment, the most significant falls came from the items gasoline and diesel.  It is also worth mentioning the negative contributions of footwear and leather articles (-18.1%) and textiles (-9.8%), due, respectively, to the reduced production of plastic and leather footwear; and of textiles and cotton thread.

 

 

Among the rising subsectors, food products and beverages (10.4%) and non-metallic minerals (25.3%), were the main positive contributions over the overall rate. In these segments, the highlights were, respectively, the items processed cashew nuts; and cookies and crackers; and cement.

 

The fall of 5.4% in the overall rate of industry contrasts to the result of the last quarter of 2006 (8.0%). Among the subsectors, this loss of dynamism results mainly from the subsectors footwear and leather articles, which changed from an increment of 14.2% in the fourth quarter of 2006 to a fall of 18.1% in January; and of petroleum refining and alcohol production (from -17.8% to -43.3%).

 

Pernambuco

 

In January, the seasonally adjusted industrial production of Pernambuco fell by 1.5% in comparison with the December rate, after increase of 0.4% in the previous month. This way, the quarterly moving average indicator also decreased (-0.6%) in the quarters ended in December and January. It was the second consecutive negative rate, with accumulated loss of 0.9%.

 

In relation to January 2006, the industry of Pernambuco increased by 5.1%; it was the fifteenth consecutive rise of this comparison. The index accumulated in the last twelve months also increased (4.9%). In the formation of the rate of 5.1%, in comparison with the same month in the previous year, there was increase in eight of the eleven subsectors surveyed, with food products and beverages (7.0%) as the main highlight. In this activity, it is worth mentioning the increase of the production of crystallized sugar and ice cream.

 

Other relevant positive contributions came from metallurgy (9.6%), due to the increased production of aluminum plates and bands, and of carbon steel square bars; and of rubber and plastic (29.6%), due to the items plastic films and plastic hoses, pipes and tubes. On the other hand, the major impact came from electric machines, appliances and equipment (023.2%), affected, above all, by the reduction of the production of batteries.

 

Bahia

 

In January, the seasonally adjusted industrial production in Bahia increased by 10.8%. In comparison with December, there  was decrease of 6.9% last month. With these results, the quarterly moving average index increased by 1.4% in the quarters ending in December and January, inverting the fall observed in the previous month (-1.8%).  In relation to January 2006, the industry in Bahia grew by 6.3%, presenting its highest result since May 2006 (7.2%).

 

In terms of the monthly indicator, the industry in Bahia increased its production by 6.3%, with positive rates in six of the nine activities surveyed. The most relevant contribution came from chemical products (8.8%), due t the increase of the production of the items xylene and octanol. It is also worth mentioning the positive impacts coming from food products and beverages (21.2%), due to the increased production of flour and “pellets” of the extraction of crude soybean oil, and of metallurgy (14.0%). The latter was affected by the item copper square bars, profiles and bars. On the other hand, the main negative pressure was observed in petroleum refining and alcohol production (-3.7%), due to the fall of diesel and other lubricants.

 

Minas Gerais

 

In January, the seasonally adjusted industrial production in Minas Gerais decreased by 0.9%, in comparison with the result of December 2006, after having increased for two consecutive months. In this period the accumulated increase was 3.3%. Nevertheless, the quarterly moving average index, with increase of 0.8% in the months ending in December and January, remained on a growing trend in the last six months, accumulating increase of 3.3%.

 

In comparison with January last year, there was a positive rate of 6.2%, a result slightly above that of the fourth quarter of last year (5.5%). The index accumulated in the last twelve months also increased (4.6%).

 

The increase of the monthly average by 6.2%, the seventh consecutive positive rate, results from the increase of both mining and quarrying industry (4.1%) and manufacturing industry (6.5%). In the latter, there were positive rates in eight of the eleven activities surveyed, especially metallurgy (9.5%), automotive vehicles (14.5%) and machinery and equipment (45.1%). In these subsectors, the highlights were the increments in the production of iron-niobium and carbon steel ingots, blocks or plates, automobiles, and portable electric appliances. The biggest negative impacts came from the production of  non-metallic minerals (-9.1%) and of petroleum refining and alcohol production (-9.7%). In the former, the main highlights was cement; in the latter, the main items was diesel.

 

Espírito Santo

 

In January, the seasonally adjusted industrial production in Espírito Santo decreased by 2.7% in comparison with the December figure. The accumulated decrease in this period was 2.9%. This way, the quarterly moving average index also decreased (-0.5%) in the quarters ending in December and January.

 

In comparison with January 2006, the industry of the state increased by 4.7%, at a lower rhythm than that observed in the last quarter of 2006 (10.0%). The indicator accumulated in the last twelve months also points to expansion (7.7%).

 

The January 07/January 06 comparison shows increase of 4.7%, the thirteenth consecutive positive result, which was mainly influenced by the performance of mining and quarrying industry (20.6%); manufacturing industry fell by 0.9%. In the first segment, which features as the main positive impact on the overall average, the highlight was the increase of the extraction of petroleum and natural gas. In the manufacturing industry, among the four activities surveyed, only food products and beverages (9.7%) increased. Among the ones with reduced production, metallurgy (-3.3%) and non-metallic minerals (-7.7%) were the most relevant negative contributions. In these subsectors, the highlights were the fall of the items steel ingots and blocks, in the former, and sinks, bathtubs and bidets, in the latter.

 

Rio de Janeiro

 

The industrial sector in Rio de Janeiro had positive indexes in different type of comparison. In the seasonally adjusted series, there was hike of 2.8% from December to January, after fall (-1.0%) in the previous month.

 

In comparison with the same month in the previous year, after the reduction in December (-0.9%), the sector had another positive rate (2.1%) and pointed to a better rhythm than in the last quarter of the year (0.1%). Considering the index accumulated in the last twelve months, the industry of the state remains on a growing trend (1.6%), but with slight decrease of the expansion rhythm in relation to the end of 2006 (1.9%).

 

The increase of 2.1% in relation to January last year resulted mainly, from the increase of manufacturing industry (3.1%), once mining and quarrying industry decreased by 1.9%. The manufacturing industry, which had a positive result after two months wit falling figures, had increase in seven of its twelve subsectors. The main positive contribution was the unusual growth of pharmaceutical industry (68.5%), mainly affected by the low comparison basis, due to the combination of a period with collective vacation and big stocks kept in January 2006.

 

Still in the same comparison, it is worth mentioning the positive contributions from other chemical products (14.1%); editing and printing (8.6%); soaps, detergents and cleaning products (28.8%) and beverages (5.6%). In these segments, the highlights were, respectively, the items: herbicides, newspapers, hair preparations, toothpaste and beers.

 

Among the five falling subsectors of industry, petroleum refining and alcohol production (-10.5%), followed by food products (-11.0%) and automotive vehicles (-11.2%) accounted for the major contributions. These subsectors were mainly affected by the reduction of the production of basic lubricants and diesel; preserved fish and fish preparations; and buses and automobiles, respectively.

 

São Paulo

 

In January, the seasonally adjusted industrial production of São Paulo fell by 1.0% in comparison with December, after increase of 0.8% in the previous month. Still considering the seasonally adjusted series, the quarterly moving average index also decreased (-0.4%) in the quarters ending in December and January.    

 

In comparison with January 2006, the industry of São Paulo increased by 3.1%, a result below the figure expected for the country (4.5%), whereas the increase observed in the monthly indicator in the last twelve months (3.3%) was above the national average (2.9%).

 

Considering the monthly indicator (3.1%), at a higher rhythm than that in the last quarter of 2006 (2.6%), twelve of the twenty subsectors surveyed contributed positively to the overall rate, with machinery and equipment (17.4%), office machines and computer equipment (71.9%) and food products (11.3%) as the main highlights. In these subsectors, it is worth mentioning the hikes of  the following items: industrial plant centers, computers, and concentrated orange juice. The reduction of automotive vehicles (-6.1%), petroleum refining and alcohol production (-9.0%), affected by programmed interruptions in the producing units, and electronic material and communication equipment (-11.7%) were the most relevant ones to industry in general. In these subsectors, the main highlights were manufacturing of automobiles, gasoline and telephony appliances. There was significant expansion of the results of several subsectors surveyed, resulting in a moderate global increase (3.1%).

 

Paraná

 

In January, the industrial production in Paraná decreased by 3.4% in comparison with the figure in December 2006. This change occurred after a period of three consecutive positive results, in which there had been growth of 7.8%, not considering the seasonally adjusted series. With these results, the quarterly moving average index increased by 0.5% in the quarters ended in December and January; it was the fourth consecutive positive rate, and there was accumulated increase of 4.5% in the period.

 

In the comparison between January 07/ January 06, there was increase of 3.2%, less than in the fourth quarter of last year (4.5%), whereas the monthly indicator accumulated in the last 12 months decreased by (-0.9%).

 

In the comparison with the same month in the previous year, the production in Paraná grew by 3.2%; it was the fourth consecutive positive result, with increase in seven of the fourteen activities. The main positive impact on the overall average came from automotive vehicles (42.6%) especially due to the production of car and trucks. It is also worth mentioning the increases of other chemical products (8.1%), furniture (8.5%) and electric machines, appliances and equipment (9.1%). In these segments, the highlights are the items fertilizers; wooden closets; pieces for electrical protection. On the other hand, the main negative contribution came from wood (-20.3%), due to the reduction of the production of folding leaves and composite wood.

 

Santa Catarina

 

 

In January 2007, the seasonally adjusted industrial production of Santa Catarina increased by 0.8% in relation to December. It was the third consecutive positive rate in the period, and the accumulated increase was 2.6%. The quarterly moving average index increased by 0.9% in the quarters ending in January and December.

 

In comparison with the same month in the previous year, the subsector expanded by 2.3%, the best result since September 2006 (3.0%), and indicates acceleration in comparison with the result of the last quarter of 2006 (0.1%) The indicator accumulated in the last twelve months (0.2%) was stable in relation to the end of 2006 (0.2%).

 

The increase of 2.3% in the comparison January 07/February 06 is mainly based on the favorable performance of eight of the eleven activities surveyed, being food products (6.4%), automotive vehicles and non-metallic minerals the biggest positive contributions to the overall rate. In these subsectors the highlights were the increments in the items: sausages and related products, meat and chicken organs; truck and buses trunks, paving tiles and ceramic plates, respectively. Among the falling activities are apparel (-15.4%), mainly due to the reduction of the production of cotton T-shirts, and rubber and plastic (-6.8%), mainly due to the fall of plastic articles for domestic use.  

 

Rio Grande do Sul

 

In January, the seasonally adjusted industrial production in Rio Grande do Sul decreased by 1.0% in relation to the December figure, after having increased for two consecutive months. In this period it had accumulated increase of 3.8%. The quarterly moving average index, which increased by 0.9% in the quarters ending in January and December, has remained on a growing trend for the last seven months, having accumulating an increment of 5.6%.

 

In comparison with January last year, there was increase of 6.2%. This result was significantly above the one in the last quarter of 2006 (1.2%); the indicator accumulated in the last twelve months was negative (-1.4%).

 

The increase of 6.2% in the monthly indicator of industry in Rio Grande do Sul reflects, above all, the increase observed in ten of the fourteen areas surveyed. Among these, the major contributions to the overall rate came from: automotive vehicles (40.6%), petroleum refining and alcohol production (20.4%) and food products (7.2%). In these subsectors, the main impacts were axis and semi-axis of cars; gasoline and naphthalene; and frozen swine meat. On the other hand, the main negative contribution came from footwear and leather articles (-13.3%), due, mainly, to the reduced production of footwear made of artificial leather and leather sneakers.

 

Despite having had a negative rate in January (-1.4%), the index accumulated in the last twelve months faced reduction of the rhythm of fall in relation to December (-2.0%).

 

 

Goiás

 

In January, the industrial production in Goiás increased by 5.8% in comparison with December, considering a seasonally adjusted series, after 0.2% of decrease in the previous month. As a result, the quarterly moving average index increased 2.6% in the quarters ended in December and January, and this was the second consecutive positive result, with accumulated gain of 4.9%.

 

In the other comparisons, the results were also positive: expansion of 18.4% in comparison with January 2006, with a better rhythm than that observed in the last quarter of last year (4.4%), and increase of 3.6% of the indicator accumulated in the last twelve months.

 

The expansion of 18.4% in the industry of Goiás, compared to results of January 2006, is a consequence of the improvement of mining and quarrying industry (233.2%) and of manufacturing industry (13.1%). It is worth mentioning that the manufacturing industry had an impact of 70 percentage points on the formation of the overall index, being the remaining 30 percentage points with mining and quarrying industry. In this sector, in which the highlight is asbestos, the unusual result reflects the low comparison basis applied, once the production of January 2006 was affected by the period of collective vacation in an important company of the sector. In the manufacturing industry (13.1%), the four subsectors had positive rates, especially food products and beverages (10.3%) and chemical products (33.4%). In these sectors, the highlights were, respectively, tomato sauce and fertilizers.