In May 2008, the industrial production decreased by 0.5% compared to the previous month, in the seasonally adjusted series, after two consecutive positive rates, when it accumulated gain of 0.7%.

In May 2008, the industrial production decreased by 0.5% compared to the previous month, in the seasonally adjusted series, after two consecutive positive rates, when it accumulated gain of 0.7%.  In the other comparisons, the results were positive: 2.4% compared to May 2007, 6.2% compared to the period January-May and 6.7% in the index accumulated in the last twelve months.  According to the survey of IBGE, the deceleration in May was more significant in the comparisons with the same periods of 2007, due to the effect of a high base of comparison and the influence of the calendar (2 working days less in May 2008).

The reduction in May compared to April, was a consequence of the trend observed in 16 among 27 surveyed activities.  The main negative influences came from automotive vehicles (-5.5%) and machines and equipment (-4.7%), followed by perfumery, soaps and cleaning products (-9.7%) and food products (-1.3%).  On the other hand, among the eleven segments with growth, the main contributions came from beverages (9.1%), petroleum refining and alcohol production (3.3%) and chemical products (3.1%).

By categories of use, in the comparison month/ previous month, the most pronounced decrease was observed in capital goods (-4.9%), after four consecutive months of expansion, period in which the sector accumulated a rate of 4.8%.  The sector of durable consumer goods, with decrease of 1.3%, registered the second consecutive decrease (-2.0% in April), after expansion of 8.8% in the period March 08/ December 07.  The production of intermediate goods (0.3%), segment of major participation in the industrial sector, was almost stable for the second consecutive month.  The segment of semi and non-durable consumer goods, registered increase of 1.3%, and compensated the decrease registered in April (-1.1%).

In the comparison with May 2007, the overall production of industry increased by 2.4%, with 15 activities sustaining positive rates, a rhythm considerably less intense than the one observed in April (10.0%) when there was growth in 21 activities.   Besides the influence of a high base of comparison, since from May of the previous year the production increased its upward trend, it may be observed in May 2008 two less working days (20) than in May 2007 (22). The main positive contributions on the overall average came from automotive vehicles (6.5%), other transportation equipment (24.2%) and mining and quarrying (7.2%).  In these segments, stood out automobiles and trucks; airplanes and motorcycles; and iron ore and petroleum.  On the other hand, among the 12 segments with reduction in the production, the major influences came from tobacco (-21.3%), office machines and computer equipment (-9.7%) and footwear and leather articles (-12.9%).  The trend of deceleration of the monthly index in May also could be observed in the indexes by sub-sectors:  among the 76 surveyed sectors, 47 had growth in this month, while in April they were 60.

In the indexes by categories of use, the loss of rhythm observed in May was relevant in the sectors of capital goods, which changed from 27.6% in April to 5.8% in May, lowest rate since September 2006, and in durable consumer goods (from 22.4% to 6.0%).  It is worth mentioning that these two sectors were the leaders in the expansion observed since May 2007, and consequently were the most influenced by the effect of a high base of comparison.  The segments of intermediate goods (2.3%) and semi and non-durable consumer goods (-0.1%) also had deceleration compared to the result of April (6.0% and 5.7%, respectively).

The performance of capital goods was influenced by the results of the sub-sectors of capital goods for industrial use, which changed from 17.7% in April to -0.7% in May, first negative rate since June 2006, followed by capital goods for transportation (from 42.5% to 11.2%) and for mixed use (from 20.0% to  1.5%).  The deceleration of durable consumer goods was associated to the performances of automobiles, which after showing increase of 36.0% in April, registered increase of 9.6% in May and in white line household appliances (refrigerators, freezers, washing machines) (from 18.3% to –6.2%).  In the segment of intermediate goods, the highlights were elaborated industrial inputs (3.0%), with increase in the production of cellulose, followed by, fuels and elaborated lubricants (8,7%), due to the major manufacturing of diesel oil and parts and accessories for industrial transportation (3.2%), as a consequence of the expansion of the production of vehicle pieces.  Even with a positive result, the manufacturing of inputs for construction increased by 6.4%, a rhythm lower than the one registered in April (11.4%).  The main negative results came from food products and elaborated beverages for industry (-5.3%), due to the decrease of –11.3% of the item crystallized sugar.  The sector of semi and non-durable consumer goods almost repeated the level of May of the previous year (-0.1%); the increase of food products and beverages for domestic consumption (2.0%), due to the major production of beers and draft beers, was counterbalanced by the decrease of 7.5% in the sub-sector of semi-durable, as a consequence mainly of the reduction in the manufacturing of leather footwear.

In the index accumulated January-May, the overall rate of 6.2% was sustained mainly, by the positive performance of the majority (20) of the 27 surveyed activities, under the leadership of automotive vehicles (18.2%), followed by machines and equipment (10.4%), other transportation equipment (31.9%) and basic metallurgy (7.1%).  In terms of products, the highlights in these industries were: automobiles and cars; equipment elevators/ merchandise transporters and harvesting machines; airplanes and motorcycles; and  carbon steel slugs, ingots and  blocks and rolled steel products.   In the analysis by categories of use, the leadership of growth came from the sectors of capital goods (16.3%) and consumer durable goods (13.7%), where the expansion occurred in a rhythm more than twice as much above the overall average of industry.  The segment of intermediate goods increased by 5.2% and semi and non-durable consumer goods increased by 1.8%.