In February 2014, the national industrial output posted increase of 0.4% against the previous month, in the seasonally adjusted series. It was the second consecutive positive result, accumulating in this period a 4.2% gain. It is worth mentioning that these positive indexes occurred after two months of output decrease: -0.4% in November 2013 and -3.8% in December 2013.

In the seasonally adjusted series, in the comparison with same month a year ago, the industry overall advanced 5.0% in February 2014, interrupting two months of consecutive negative rates: -2.6% in December 2013 and -2.2% in January 2014.

Therefore, the industrial sector accumulated a growth of 1.3% in the first two months of the year.

The annualized rate, cumulative indicator over the last 12 months, expanding 1.1% in February 2014, posted pace increase over the result registered last January (0.5%), but it was slightly below that of December 2013 (1.2%).

The complete publication of the survey can be accessed at

www.ibge.gov.br/english/estatistica/indicadores/industria/pimpfbr/

The industrial sector, in February 2014, continued to improve its producing pace as evidenced in the second consecutive positive result in the comparison with the previous year - a period in which it accumulated an expansion of 4.2%. Moreover, it posted a widespread profile of positive rates, since three out of the four categories of use and 19 out of the 27 activities investigated registered output growth this month. With these results, the industry overall offset part of the 4.2% loss accumulated in November-December 2013, but it still is 2.7% below the record level reached in May 2011. In the seasonally adjusted series, the evidences of a better pace are clear in the evolution of the quarterly moving average, which shows that the industrial output interrupted, in February 2014, the downward trend stated last November.

In relation to the same month a year ago, the industrial output recorded expansion, with a monthly index in February 2014 offsetting the two-month output fall and with a clear prevalence of positive rates among the activities and categories of use. Of note is the influence not only of the rise in the output pace in the beginning of the year, but also of the calendar effect, since February 2014 had two more workdays than the same month a year ago. The pace gain was also seen in the comparison between the first two months of the year (1.3%) and the index of Q4 2013 (-0.3%), both comparisons against the same period a year ago. Among the categories of use, the highlight was durable consumer goods, moving from 3.9% in the October-December period in 2013 to 6.9% in the first two months of 2014.

19 out of the 27 segments surveyed record increase in February

The 0.4% advance in the industrial output from January to February had a widespread growth, reaching three of the four categories of use and 19 of the 27 segments surveyed. Among the activities, the major positive influence was recorded by motor vehicles, which grew 7.0% this month – the second consecutive positive result - accumulating in this period an expansion of 16,8%. It is worth mentioning that these two positive results interrupted the negative behavior seen since last October (2013), a period in which the segment accumulated a 23.5% loss. Other important positive contributions to the industry overall came from medical, optical and other equipment (17.6%), beverages (5.1%), food products (1.4%), rubber and plastic (4.2%), basic metals (2.8%) and tobacco (25.2%). Of note is the fact that, except for the last activity, which recorded a loss of 47.6% in the prior month, the others registered positive rates in January: 22.2%, 1.7%, 0.1%, 5.3% and 2.9%, respectively. Conversely, among the seven segments that decreased production, the performances of major importance to the global average were registered by pharmaceuticals (-9.7%) and other chemicals (-3.1%). The former eliminated part of the 30.8% advance recorded in the previous month and the latter marked the second negative consecutive result, accumulating in this period a 5.9% loss.

Among the categories of use, still considering the comparison with the previous month, capital goods, advancing 3.3%, posted the sharpest rise in February 2014, after growing 4.8% in the prior month. The sector of intermediate goods (0.8%) also advanced above the national average (0.4%) and recorded the second positive rate in a row, accumulating a gain of 2.4% in this period. The segment of capital goods had a slight positive change this month (0.1%), after growing 13.3% last January, whereas the production of semi- and non-durable consumer goods, changing -0.1%, had the only negative result this month.

Quarterly moving average changes 0.1%

In the seasonally adjusted series, the evolution of the quarterly moving average index for the industry overall had a positive change of 0.1% in the quarter ended in February against the previous month, after recording two consecutive months of negative results: -1.2% in December 2013 and -0.2% in January 2014. Among the categories of use, in relation to the movement of this index on margin, durable capital goods (1.0%) recorded the only positive change in February 2014 and interrupted the downward trend started last November. The segments of capital goods (-0.9%), of intermediate goods (-0.7%) and of semi- and non- durable consumer goods (-0.4%) recorded the negative rates this month. The first segment recorded the third drop in a row and accumulated in this period a 8.0% loss; the second increased the pace of decline over the previous month (-0.4%); and the last one kept he downward trend started in August 2013.

Industrial output advances 5.0% in comparison with February 2013

In the comparison with the same month a year ago, the industrial sector grew 5.0% in February 2014, with prevalence of positive results, since the four categories of use and 21 of the 27 segments recorded expansion in the production. It is worth mentioning that February 2014 (20 days) had two more workdays than the same month in the prior year (18). Among the activities, the segment of motor vehicles, which advanced 12.9%, exerted the biggest positive influence in the formation of the industry average, pushed to a great extent by the production growth of cars, vehicles for transportation of goods, chassis with engine for trucks and buses, tractor trucks for trailers and semi-trailers and trucks. Other positive relevant contributions on the national overall came from electronic material, communication equipment and apparatuses (43.3%), machinery and equipment (9.3%), other transportation equipment (14.4%), office machinery and computer equipment (32.9%), pharmaceuticals (10.0%), food products (2.6%), beverages (7.1%), wearing apparel and accessories (27.4%) and rubber and plastic (6.8%). In terms of product, the most important positive pressures in these segments were, respectively, TV sets and mobile telephones; motor graders, wheel loaders, self propelled stacker forklifts, microwave ovens, kitchen stoves, machinery for the pulp sector, metal grain silos, air conditioners, forklift trucks and machining centers for metal manufacturing; airplanes and motorcycles; parts and accessories for computer equipment, computer monitors and printers; medicines; crystallized sugar, cookies and crackers, powdered milk, ice-creams, popsicles and frozen poultry and giblets; beer, draft beer, soft drinks and syrup and powder preparations for beverages; panties, bras, cotton T-shirts, dressers, men pants, sleepwear or bath towels and T-shirts; and parts and accessories made of plastic and rubber for the car industry and tires for trucks, buses and cars. On the other hand, still comparing to February 2013, among the six activities that reduced the production, the major impacts were seen in publishing, printing and reproduction of recorded media (-7.9%), electrical machinery and apparatuses (-6.7%), other chemicals (-2.5%) and fabricated metal products (-3.7%), pushed to a great extent by the drops in the manufacturing of papers, books and CDs, in the first segment, of electronic security alarm systems, wires, cables and electrical conductors, transformers and boards, panels, cabinets and other bases equipped with electrical apparatus for switching or protecting electrical circuits, in the second, polyvinyl chloride (PVC), insecticides for agricultural use, polypropylene (PP), superphosphate and high density polyethylene (HDPE), in the third, and parts and pieces for capital goods, aluminum cans for packaging and iron and steel structures, in the last one.

Comparing with the previous month, durable consumer goods, (20.9%) and capital goods (12.4%) recorded a two-digit growth in February 2014. The segments of semi- and non-durable consumer goods (3.6%) and of intermediate goods (1.1%) also recorded positive rates this month, but they were below the national average (5.0%).

The sector of durable consumer goods, advancing 20.9% in February 2014, posted the sharpest expansion since March 2010 (25.8%) and interrupted four months of consecutive negative results in this type of comparison. This month, the segment was particularly influenced the bigger manufacture of cars (21.1%) and brown goods (87.8%). It is also worth mentioning the positive impacts coming from mobile telephones (26.1%), of motorcycles (7.3%), of white goods (2.3%), of other house appliances (9.1%) and of furniture (5.6%).

The sector of capital goods, growing 12.4% in February 2014, posted the 14th consecutive positive result in comparison with the same month a year ago. In the index formation of this month, the segment was influenced by the growth in all of its groups, with a clear highlight to the 15.5% advance registered by capital goods for transportation equipment, leveraged to a great extent by the larger manufacture of airplanes, vehicles for transportation of goods, chassis with engine for buses and trucks and trucks and tractor trucks for trailers an semi-trailers and trucks. The other positive results were seen in  capital goods for construction  (44.5%), the 11th positive rate in a row in this kind of comparison, for miscellaneous purposes (7.1%), for industrial purposes (6.2%) and for agriculture (2.0%) and for electricity (0.9%).  

Month on month a year ago, semi- and non-durable consumer goods (3.6%) and intermediate goods (1.1%) also posted positive rates in February 2014. In the first segment, which interrupted six months of consecutive negative results, the performance this month was leveraged by increase in all groups, with a highlight to food and beverages for domestic consumption (3.0%) and fuels (10.9%), pushed mainly by the advances in the manufacture of beer, draft beer, cookies and crackers, soft drinks and powdered milk, in the first subsector, and of motor gasoline and ethanol, in the second. The other positive results were seen in the groups other non-durable (1.7%) and semi-durable (4.9%), mostly influenced by the items medicines; and cotton T-shirt, dresses, men pants and cotton bath, face and hand towels, respectively. The expansion in the production of intermediate goods, which offset a two-month drop in the production was due to advances coming from products related to the activities of food products (6.7%), rubber and plastic (6.7%), non-metallic mineral products (1.7%), mining and quarrying industries (0.9%), basic metals (0.7%), textiles (1.8%) and motor vehicles (0.6%), whereas the negative influences were recorded by oil refining and ethanol production (-2.0%), other chemicals (-2.4%), fabricated metal products (-5.7%) and pulp, paper and paper products (-1.3%). Still in this category of use, it is worth mentioning the positive rates coming from inputs for civil construction (2.9%), after two consecutive negative results in a row, and of packaging (1.7%), which interrupted three consecutive months of output drops.

Cumulative index of the year grows 1.3%

 In the cumulative index for the period of January-February of 2014, over the same period in the previous year, the industrial sector posted a 1.3%, with 13 of the 27 sectors surveyed recording growth. The segments of electronic material, communication equipment and apparatuses  (35.4%) and of machinery and equipment (8.1%) exerted the major positive influences in the formation of the industry average, leveraged to a great extent by the growth in the production of TV sets and mobile telephones, in the first segment, and of motor graders, wheel loaders, self propelled stacker forklifts, machining centers for metal manufacturing, drilling devices, harvesting machines, microwave ovens, forklift trucks, industrial freezers, machinery for the pulp sector and metal grain silos, in the second one. Other positive contributions to the national ovreall came from office machinery and computer equipment (32.9%), other transportation equipment (11.8%), pharmaceuticals (3.4%) and wearing apparel and accessories (12.3%). In terms of products, the most relevant positive influences were, respectively, parts and accessories for computer equipment and monitors; airplane and motorcycles; medicines; and panties, bras, pants, T-shirts, cotton T-shirts, dresses and sleepwear or bath towels. On the other hand, among the 13 activities that reduced the production, the main impacts were seen in publishing, printing and reproduction of recorded media (-9.2%), fabricated metal products (-6.2%), electrical machinery and apparatus (-7.8%) and motor vehicles (-1.3%), pushed to a great extent by the drops in the manufacture of newspapers, books, magazines and CDs, in the first segment, of parts and pieces for capital goods, iron and steel forged shapes and pieces and aluminum cans for packaging, in the second one, of electronic security alarm systems, wires, cables and electrical conductors and boards, booths, cabinets and other bases equipped with apparatus for switching or protecting electrical circuits, in the third one, and of car parts, tractor trucks for trailers and semi-trailers, cars and diesel engines for buses and trucks, in the last one.

Among the categories of use, the profile of the first two months of 2014 was more dynamic for capital goods (8.0%) and durable consumer goods (6.9%), mostly due to the manufacture of capital goods for transportation, for construction and for industrial purposes, in the first segment, and brown goods, motorcycles and mobile telephones, in the second. On the other hand, the production of semi- and non-durable consumer goods registered a slightly positive change (0.1%), whereas that of intermediate goods dropped 0.8% in the cumulative index of the year.