In June of 2011, the industrial output contracted 1.6% against the previous month in the seasonally adjusted series, reverting the expansion of 1.1% observed in May. In relation to the same month a year ago, the industry increased by 0.9%, a much lower rate than the one registered in May (2.7%). At the end of the second quarter of 2011, the industrial sector was positive in relation to the same period of 2010 (0.7%), but it contracted compared with the immediately previous quarter (-0.7%). The accumulated index for the six first months of the year rose by 1.7%. The annual rate, accumulated index in the last twelve months, kept the downward trend started in October of last year (11.8%), changing from 4.5% in May to 3.7% in June. The complete publication to this survey is available at www.ibge.gov.br/home/estatistica/indicadores/industria/pimpfbr/.

The deceleration of industrial activity from May to June had a more general profile, reaching 20 of te 27 industrial subsectors surveyed and all the categories of use. The evolution of the quarterly moving average index also contributes to the reduced dynamism of the industrial sector this month; the index recorded its first negative result since October 2010, after being close to stability for two consecutive months. In the comparison quarter/immediately previous quarter, industrial output also pointed to decline in the production rhythm, changing from a 2.0% expansion to a 0.7% decrease in the following quarter.

All the categories of use recorded lower dynamism between the two periods. Capital goods (from 4.8% to 0.3%) and intermediate goods (from 0.9% to 0.2%) kept their slightly positive rates in nthe second quarter of the year, whereas the producing sectors of durable consumer goods (from 5.3% to -6.2%) and semi-durable and non-durable consumer goods (from 1.0% to -1.2%) had opposite to those in the firrst quarter of 2011. In the comparisons with similar periods in 2010, the results remained positive in terms of the months index, but presented clear reduction in the size of increase when compared to prévios months. That has occurred in spite of the predominance of positive rates in most subsectors surveyed.

June brought decrease in 20 and increase in 7 subsectors

The decrease of 1.6% recorded in indstry between May and June had na overall profile, reaching 20 of the 27 subsectors surveyed and all the categories of use. Among the sectors, the main negative impact over the overall rate was caused by petrleum refining and alcohol production (-8.9%), affected, to a great extent, by the technical interruption for maintenance in industrial plants of this sector. The second position brings metal products (10.9%), being followed by automotive vehicles (-1.4%), food products (-1.2%), Office, computer and communication material and equipment (-6.0%), machinery and equipment (-1.4%) and metallurgy (-2.1%). It is worth mentioning that, except for the subsectors of metallurgy, which recorded its third consecutive decrease, the other subsectors had increase of output in the previous month: 6.4%, 9.9%, 3.4%, 3.7%, 0.8% and 4.9%. On the other hand, among the activities with increae of output, editing and printing (5.9%), after having fallen by 1.8% in May, accounted for the most relevant positive contribution to industry in June.

In the analysis by categories of use, also versus the immediately previous month, the most significant decrease was that of semi-durable and non-durable consumer goods (-2.4%), after stability in May (0.0%) and decrease in April (-1.9%). The segments of capital goods (-1.9%) and intermediate goods (-1.6%) also recorded output decrease, and nulled the 1.6% expansion of the previous month. The subsector of durable consumer goods, after decreasing by 0.5% in June, was the only one to Record a rate below that of the overall rate of industry (1.6%).

Quarterly moving average stayed at -0.9%

With the negative result observed from May to June, the quarterly moving average index recorded tits first negative result since October 2010, with decrease of 0.9% in the quarter that ended in June, versus May. Among the categories of use, also in relation to the change of this index, there were negative rates in all the segments. Durable consumer goods was the main highlight (-2.9%), which accelerated the rhythm of increase of increase over the result of May (-1.1%), being followed by semi-durable and non-durable consumer goods (-1.4%), capital goods (-1.2%) and intermediate goods (-0.3%).

Industrial output increases 0.9% over figure of June 2010

Compared to the same month in the previous year, the industrial output increased by 0.9% in June 2011, with growth in 18 of the 27 subsectors surveyed. The most relevant positive contributions came from automotive vehicles 92.5%), other transportation equipment (12.1%), pharmaceutical industry (6.9%), electronic material and communication equipment (10.0%), mining and quarrying industry (3.9%), non-metallic minerals (5.9%) and tobacco (21.0%). In these activities, the main highlights were: trucks, tractor-trucks and vehicles for the transportation of goods; airplanes and motorcycles; medicines; mobile telephones and appliances for mobile telephony; iron ore and crude petroleum oil; "Portland" cement and ceramic plates; and processed tobacco. On the other hand, the most relevant negative impacts came from textiles (-16.6%), beverages (-10.4%), petroleum refining and alcohol production (-4.9%), food products (-2.4%) and metallurgy (-3.4%), manly affected by the reduced production of cotton bathing suits; beer and draft beer; diesel and naphtha for the petrochemical industry; crystallized sugar and concentrated orange juice; and carbon-steel bobbins.

Among the categories of use, also versus the same month in the previous year, capital goods (6.2%) recorded the most significant hike in June 2011,with acceleration in relation to the industry as a whole 90.9%). Such performance was particularly influenced by the advances observed in capital goods for transportation (15.8%) and construction (6.9%), once the other subsectors faced decrease of output: capital goods for agriculture (-13.7%), for mixed use (-1.3%), for electricity (-1.6%) and for industrial use (-0.4%). With positive results, yet still below the average of industry, feature: durable consumer goods (0.4%) and intermediate goods (0.1%), with lower rates than in

In the first subsector, positive influences came from the biggest production of mobile telephones (12.8%), motorcycles (13.1%), furniture (24.5%) and "white type" household appliances (0.8%), once the automobiles (-7.8%) and "brown type" household appliances faced decrease. The slight positive change observed in intermediate goods over June 2010 resulted, mainly, from the products associated to non-metallic minerals (6.1%), mining and quarrying industry (3.9%), metal products (8.3%), automotive vehicles (2.5%), other chemical products (1.0%) and pulp and paper (1.4%), whereas the main negative contributions were those of petroleum refining and alcohol production (-7.3%), textiles (-12.9%), metallurgy (-3.4%) and food products (-6.5%). In this category of use, it is worth mentioning the positive results that came from input of construction (4.6%) and packaging (2.0%).

Also considering the monthly index, the subsector of semi-durable and non-durable consumer goods (-1.3%) recorded a negative result among the categories of use this month, being affected, to a great extent, by the decreases observed in the groups of food products and beverages for domestic consumption (-3.1%) and semi-durable goods (-11.0%). The decrease of production in these segments resulted, mainly, from the reduced production of the items: beer, draft beer and concentrated orange juice, in the former group, and leather and synthetic footwear, in the latter. The subsector other non-durable goods (3.6%) was the only positive impact in this category of use, influenced, to a great extent, by the increase of the production of magazines, medicines and veterinary vaccines.

In the analysis by quarter, it is possible to observe that the industrial sector increased by -0.7% in the second quarter of the year, and has recorded positive results for seven consecutive years, but with clear decrease of the production rhythm since the figure of the first three months of 2010 (18.2%). Both comparisons, in this case, refer to period/same period in the previous year. Among the categories of use, the subsectors of capital goods, which changed from 8.6% in the first quarter of the year to 4.5% in the second, and intermediate goods (from 1.9% to 0.5%), kept their positive rates, but with decrease of the magnitude of increase, whereas the subsectors producing durable consumer goods (from 5.1% to -1.0%) and semi-durable and non-durable consumer goods (from 0.7% to -0.3%) recorded the first negative result since the third quarter of 2009.

Accumulated figures point to increase in 19 of the 27 activities in 2011

The index accumulated in the first semester of the year, compared to that in the same month of the previous year, increased by 1.7% in the total of industry, with positive rates in all the categories of use, 19 of the 27 activities surveyed, 45 of the 76 subsectors and 54.3% of the 755 products investigated. Among the activities, automotive vehicles, with rise of 6.2%, remained as the leader in terms of positive contribution to the overall index, affected by the positive results of most products surveyed in the sector (approximately 80%).

It is also worth mentioning the advances occurred in other transportation equipment (12.5%) pharmaceutical industry (6.4%), medical and hospital instruments and other equipment (20.8%), non-metallic minerals (4.8%), mining and quarrying industry (3.0%), machinery and equipment (2.1%) and petroleum refining and alcohol production (2.0%).

In these subsectors, the main items accounting for the positive performance were, respectively, trucks, vehicles for the transportation of goods and tractor trucks; airplanes and motorcycles; medicines; watches; ceramic plates and tiles; Portland cement and concrete mass; iron ore; parts and pieces for earth –moving machinery, graders and shovel-loaders; and gasoline and diesel. On the other hand, the subsectors of textiles (-12.6%), other chemical products (-2.4%), beverages (-4.6%) and food products (-1.3%) accounted for the main negative contributions over the overall average, being affected, to a great extent, by the items cotton bathing suits and cloth; herbicides for use in agriculture; preparations in syrup for use in agriculture; and crystallized sugar and concentrated orange juice, respectively.

Among the categories of use, also considering the index accumulated in the year, the profile of the results for the first six months of the year confirmed the bigger dynamism coming from capital goods (6.5%), mainly due to the increased production of capital goods for transportation and construction. The subsector durable consumer goods, which recorded increase of 2.0% over the same period in the previous year, also recorded increase above the national average (1.7%). The production of intermediate goods increased by 1.2% in the end of the first semester of 2011; that of semi-durable and non-durable goods recorded slight positive change (0.2%).