The accumulated growth in 2007 was 6.0%, best result since the value of 8.3% registered in 2004, surpassing considerably the value observed in 2006 (2.8%) and 2005 (3.1%).

The accumulated growth in 2007 was 6.0%, best result since the value of 8.3% registered in 2004, surpassing considerably the value observed in 2006 (2.8%) and 2005 (3.1%).  The industrial performance of 2007 was supported mainly by the growth of the domestic demand, due to the maintenance of the expansion of credit, to the increase of employment and income, and to the increase of investments.   The first semester of 2007 registered growth of 4.8% compared to the first semester of 2006, while in the second semester of 2007 compared to the same period of 2006, the increase in the production was 7.1%.

In December 2007, the industrial production fell 0.6% compared to November, in the series with seasonal adjustment, second consecutive negative rate, accumulating loss of 2.6% in this period.  In relation to December 2006, industry increased 6.4%.  In the fourth quarter of 2007, the production was 1.9% above the immediately previous quarter and 8.0% compared to the fourth quarter of 2006

The industrial production accumulated growth of 6.0% in 2007, surpassing considerably the value observed in 2006 (2.8%) and 2005 (3.1%).  In 2007, the increase of production was generalized, reaching twenty-one activities, the four categories of use, sixty-five among the sixty-six sub-sectors and 66% of the products surveyed.

Among the activities, the performances with the greater influence on the overall average of industry were automotive vehicles (15.2%) and machines and equipment (17.7%).  In these groups stood out the items automobiles, vehicle pieces and trucks, in the first sector and, plant centers, microwave ovens, refrigerators and harvesting machines, in the second.  Also stood out the positive results of electric machines, equipment and material (14.0%); other chemical products (5.7%); basic metallurgy (6.8%); mining and quarrying (5.8%) and food products (2.5%).  This group of industries had a dynamic considerably articulated with the good performance of the areas of capital goods and durable consumer goods, leaders of the recent expansion, besides benefiting from the dynamism of exports of commodities, as is the case of mining and quarrying (iron ores) and food products (sugar).  On the other hand, the main negative results came from tobacco (-8.1%), wood (-3.2%) and electronic material and communication equipment (-1.1%).

In the indexes by categories of use, the major rate was recorded by capital goods (19.5%), the only one which reached a two-digit rate, supported in the generalized growth of several sub-sectors: capital goods for transportation (18.1%), for mixed use (15.4%), for industrial use (17.0%), electricity (26.0%), agriculture (48.3%) and construction (18.7%).  The segment of durable consumer goods also had expansion above the national average, increasing by 9.2%, supported mainly in the dynamism of the automobile sector (12.6%), once the positive results of mobile telephones were not so high (2.0%), and  household appliances (5.3%).  The good performance of this segment was a consequence of the good credit conditions, major stability in the labor market and increase of the overall wages. 

Still in the comparison with the year 2006, intermediate goods (4.9%) and semi and non-durable consumer goods (3.4%), had expansion in all the sub-sectors and showed growth below the overall industrial average.  In intermediate goods, the main highlight was elaborated industrial inputs (4.1%), followed by pieces and accessories for industrial transportation equipment (11.7%) and basic industrial inputs (7.2%).  In these groups, stood out the increases in the items steel products and herbicides; vehicle pieces; and iron ores.  The index observed in the production of inputs for construction (5.1%) closed above the total of the category and of the performance of 2006 (4.5%).  In the sector of semi and non-durable consumer goods, the main influence came from food products and elaborated beverages for domestic use (3.,8%), followed by fuels (6.2%), other non-durable (2.0%) and semi-durable (3.2%), influenced by the items soft drinks and beers; alcohol; insecticides; and bath towels.

Industry grows for seventeen consecutive quarters compared to the same period of the previous year

In the quarterly indexes, the industrial activity has positive rates for seventeen consecutive periods, in the comparison with the same quarter of the previous year, and has been maintaining an upward trend since the second quarter of 2006.  It is worth mentioning that the increase of 8.0% in these three last months of 2007 is the highest since the value of 10.4% of the third quarter of 2004.

Among the categories of use, capital goods registered the major acceleration between the third and fourth quarters of 2007, changing from 20.1% to 24.0%, supported in the performance of capital goods for mixed use (from 9.2% to 20.4%), for industrial use (from 10.9% to 17.1%), for electricity (from  30.0% to 41.5%) and for construction (from 21.9% to 26.5%).  The sector of durable consumer goods, which maintained a constant rhythm in the last two quarters of 2007, increasing 13.8%, a result considerably above the industrial average, had its performance supported mainly in the manufacturing of automobiles (22.3%), once household appliances (4.8%) and mobile telephones (6.4%) registered lower increases.  The producing sectors of intermediate goods (from 4.3% to 6.8%), and semi and non-durable consumer goods (from 3.4% to 4.1%) also registered major dynamism between the two quarters.  In the first segment, the highlight, according to the industrial activity, were food products (from -2.4% to  5.4%), basic metallurgy (from 3.8% to 7.0%), petroleum refining and alcohol production (from 4.2% to  5.7%) and cellulose and paper (from -0.1% to 3.0%), while in the second segment, stood out fuels (from 4.4% to 12.1%) and food products and elaborated beverages for domestic use (from 2.9% to 3.4%).

Decrease of 0.6% of Industry in December reached 16 among 27 surveyed segments

The reduction observed from November to December (-0.6%) reached the majority (16) of the twenty-seven surveyed segments and two among four categories of use.  Among the activities, the main negative influences came from automotive vehicles (-6.2%), which after growing 8.7% in October, had the second consecutive decrease, accumulating a loss of 11.0% in these two months. Other relevant negative contributions came from edition and printing (-8.9%) and office machines and computer equipment (-11.1%).  Among those which expanded the production stood out mining and quarrying (6.5%), which accumulated in three months growth of 7.7%, electronic material and communication equipment (3.5%), food products (1.0%) and petroleum refining and alcohol production (1.5%).

In the analysis by categories of use, semi and non-durable consumer goods registered the most negative result (-2.1%), after decreasing 0.6% in November.  The segment of capital goods (-0.2%) broke a sequence of four positive rates, period in which it accumulated expansion of 8.5%.  Intermediate goods (1.0%) and durable consumer goods (0.6%) increased the production from November to December, after decreasing 0.8% and 2.4% in the previous month, respectively.

In the comparison December 2007/ December 2006, the industrial activity increased 6.4%, with positive rates in the major part (20) of the twenty-seven surveyed sectors and four categories of use.  The favorable performance of automotive vehicles (14.9%) and machines and equipment (17.8%) brought these sectors with the main results on the overall average. Stood out, also, the positive contributions of electronic material and communication equipment (20.9%); mining and quarrying (10.0%); petroleum refining and alcohol production (6.9%); electric machines, equipment and material (15.8%) and basic metallurgy (7.5%).  The most relevant negative results came from edition and printing (-6.6%), footwear and leather articles (-8.3%) and wood (-10.5%).

In the analysis by categories of use, the highest expansion came from the segment of capital goods, where the growth December 2007/ December 2006 reached 19.9%, followed by durable consumer goods (11.6%) which also had a two-digit rate.  The segment of intermediate goods (6.8%) had an index close to the overall average (6.4%), while semi and non-durable consumer goods (1.3%) brought the most moderate result.

In summary, the results of the last quarter of the year confirm the dynamism of the industrial sector along 2007, with the indexes increasing 8.0% compared to the same period of 2006 and 1.9% in relation to the immediately previous quarter.  It is also worth mentioning that in this type of comparison which has a series with seasonal adjustment, the gain is guaranteed mainly by the strong expansion of October (3.3%), once November (-2.0%) as well as December (-0.6%) had negative rates.  Still in the comparison with the immediately previous quarter, the sector completed the ninth consecutive quarter with growth, accumulating 12.0% since the last quarter of 2005.  In this same comparison, capital goods (33.9%) and durable consumer goods (18.4%) were the sectors with major expansion, while intermediate goods (9.2%) and semi and non-durable consumer goods (7.1%) grew below the industrial average.  Hence, also for this type of comparison, the pattern of growth was confirmed during 2007, with the industrial performance supported mainly in the growing of the domestic demand, due to the continuation of credit expansion; increase of employment and income; and increase of investments.