In July, industrial production grew by 2.2% in relation to June, in the seasonally adjusted series, the seventh consecutive expansion in this comparison. In view of July 2008, the industrial activity recorded decrease of 9.9%, the smallest fall since April. Thus, the indicator accumulated in the year changed from -13.4% in June to -12.8% in July. The index accumulated in the last 12 months kept a downward trend, changing from -6.5% in June to -8.0% in July.

In relation to June, 23 of the 27 surveyed subsectors record growth

With the increase of 2.2% observed for the total of industry between June and July, the production baseline of the sector was 10.6% below the record level reached in September 2008. This increase in the activity rhythm in July was disseminated among the industrial sectors, reaching 23 of the 27 surveyed subsectors. The most important performance for the overall result came from machinery and equipment (8.9%) that, after strong adjustment in production at the end of last year, accumulated increase of 11.6% between April and July. It is also worth mentioning the increase of 4.5% in metallurgy, which shows growth during four consecutive months, influenced this month by the return to operation of some blast furnaces, followed by food products (1.9%), office machines and computer equipment (12.1%), rubber and plastic (5.6%), non-metallic minerals (3.6%), and electronic material and communication equipment (4.5%). On the other hand, the main negative influences came from electric machines, appliances and material (-6.3%), and petroleum refining and alcohol production (-1.1%). Automotive vehicles, after accumulating an increase of 69.2% from January to June, remained practically stable in July (0.1%).

Among the categories of use, still in the comparison month/previous month, the sector durable consumer goods (4.6%) kept the highest growth rhythm from June to July, followed by intermediate goods (2.0%) with a close rhythm to the total of industry (2.2%), whereas capital goods (1.4%) and semi-durable and non-durable consumer goods (1.0%) grew below average.

The positive behavior of industrial activity in July confirmed the upward trend of the quarterly moving average index in the last five months. For general industry, the increase observed in this indicator between June and July was 1.3%, increasing the rhythm in view of the previous month (1.0%), with durable consumer goods exhibiting the highest increase (3.6%), followed by capital goods (1.5%) and intermediate goods (1.4%). The sector semi-durable and non-durable consumer goods recorded the second consecutive negative rate (-0.2%).

In the comparison to July 2008, 23 of the 27 sectors reduce production

In relation to July 2008, the industrial sector decreased by 9.9%, with a generalized decreasing profile, reaching 23 of the 27 surveyed activities. The main negative contribution came from automotive vehicles (-21.5%), followed by machinery and equipment (-20.2%), metallurgy (-19.2%), electronic material and communication equipment (-28.1%), electric machines, appliances and material (-25.4%), metal products (-20.0%), and mining and quarrying industry (-10.1%). The highlights were: automobiles and truck-tractors; ball bearing for industrial equipment and elevators/transporters; iron-niobium and steel ingots, blocks and billets or steel laminated items; mobile telephones and telephonic switching apparatus; transformers; iron and steel structures and metal laths; and iron ore. On the other hand, the main positive impact came from pharmaceutical industry (8.6%).

Among the categories of use, still in the comparison to July 2008, the segment capital goods keeps recording the strongest decrease (-23.9%), supported by reductions in the production of all its groups, with highlights being capital goods for transportation (-19.1%), mainly influenced by the smaller production of trucks; followed by capital goods for industrial use (-34.7%), for mixed use (-15.5%), for electricity (-44.7%) and for construction (-51.9%). The performance of intermediate goods was 11.6% below that of July 2008 and was also negatively influenced by all its subsectors, highlighting products related to metallurgy (-19.2%), automotive vehicles (-28.0%), mining and quarrying industry (-10.3%), other chemical products (-7.2%), and rubber and plastic, mainly influenced by reductions in: iron-niobium and steel ingots, blocks and billets or steel laminated items; pieces and accessories for automobile industry; iron ore; herbicides for use in agriculture; and tires, plastic and rubber pieces for automobile industry. Other highlights are the negative rates observed in inputs for civil construction (-10.0%) and for the packaging sector (-6.3%).

Still in the comparison to July 2008, decreasing at a lower rhythm than the average of industry (-9.9%), durable consumer goods (-6.7%) recorded the smallest fall since October of last year, stimulated especially by the positive behavior of household appliances production (12.5%), which grew during the third consecutive month, mainly influenced by the “white goods” (38.2%), since the “brown goods” decreased by 26.2%. The production of cars (-10.1%) and mobile telephones (-17.6%) continued showing negative rates. The sector semi-durable and non-durable consumer goods decreased by 3.2%, reflecting, above all, the negative behavior of fuels (-13.6%) and of semi-durable (-12.1%), where the reduction on items gasoline and alcohol, in the first subsector, and leather footwear, in the second, accounted for the main impact. The only positive influence was recorded by the group elaborated food products and beverages for domestic consumption (0.6%), partially explained by the increase in the production of beer, draft beer and soft drinks.

Production decreased by 12.8% in the index accumulated from January to July 2009

The index accumulated for the period January-July 2009 decreased by 12.8%, reflecting the falls observed in 23 of the 27 industrial subsectors, with main negative impacts coming from automotive vehicles (-23.3%), machinery and equipment (-27.7%), metallurgy (-26.5%), electronic material and communication equipment (-38.3%), other chemical products (-13.1%), electric machines, appliances and material (-25.1%), and mining and quarrying industry (-13.2%). On the other hand, pharmaceutical industry (10.0%), and other transportation equipment (13.0%) were the most significant positive impact. Among categories of use, the results were: semi-durable and non-durable consumer goods (-3.1%), with a fall below the industry average (-12.8%), followed by intermediate goods (-15.1%), durable consumer goods (-17.3%), and capital goods (-23.1%).

In summary, the increase in the rhythm of industrial activity in July (2.2%) had a generalized profile, reaching most (23) of the 27 industrial sectors, and contributed to the sector recording of 12.0% expansion along 2009. Comparisons with 2008 are negative, but decreasing in the last four months. In the monthly index, which decreases by 9.9%, there is reduction in the rhythm of fall in relation to the average of the first semester of the year (-13.4%). This movement was followed by 21 of the 27 surveyed sectors, highlighting: machinery and equipment (from -29.0% to -20.2%), automotive vehicles (from -23.6% to -21.5%), metallurgy (from -27.8% to -19.2%), rubber and plastic (-19.6 to -12.5%), other chemical products (-14.2% to -7.6%), electronic material and communication equipment (-40.1% to -28.1%), and office machines and computer equipment (from -20.6% to -2.9%). The behavior of this group of sectors, which represents approximately 40% of the total of industry, summarizes the positive effects, on the industrial activity, of tax incentive, credit restart, maintenance of employment and overall wages, with direct effect on the level of intern consumption.