In the seasonally-adjusted series, the industrial production grew 2.6% in September 2020 over August, after increasing in May (8.7%), June (9.6%), July (8.6%) and August (3.6%). These five months of rise offset the loss of 27.1% accrued between March and April, when the industrial output had fallen until the lowest level in the time series. As a result, the industrial activity in September 2020 was 0.2% above the level of last February, when the COVID19 pandemic still had no affected the industrial production in Brazil.

In the seasonally-unadjusted series, the industry grew 3.4% in relation to September 2019, interrupting ten consecutive negative results in this comparison. The sector accrued a loss of 7.2% in the year and of 5.5% in 12 months.

The industry grew 3.4% in September 2020 in relation to September 2019, interrupting ten consecutive months of negative results. In the year, the industrial sector accrued a drop of 7.2% and, in the last 12 months, a retreat of 5.5%, decelerating the drop over the previous month (-5.7%).

The advance of 2.6% of the industrial activity between August and September 2020 had a widespread profile of growth, reaching all the major economic categories and most (22) of the 26 sectors surveyed.

Production of motor vehicles advances 14.1% over August

Among the activities, the most relevant positive influence came from motor vehicles, trailers and bodies, which advanced 14.1%, leveraged by the increasing production after the downtime due to the pandemic. The sector accrued an expansion of 1,042.6% in five consecutive months of increasing production, though it is still 12.8% below the level of last February.

Other relevant positive contributions to the overall industry came from machinery and equipment (12.6%), manufacture of wearing apparel and accessories (16.5%), leather, travel articles and footwear (17.1%), food products (1.2%), basic metals (3.5%), non-metallic mineral products (4.2%), electrical machinery and apparatus (5.9%), pharm-chemicals and pharmaceuticals (6.2%), pulp, paper and paper products (3.7%), computer equipment, electronic and optical products (5.9%), coke, petroleum products and biofuels (1.0%) and rubber and plastic products (3.2%).

Among the four activities that reduced their output, that of mining and quarrying industries (-3.7%) registered the major negative impact this month, thus interrupting three consecutive months of positive figures that accrued an expansion of 18.2%.

Having grown 10.7% over August 2020, durable consumer goods recorded the highest positive rate and posted the fifth consecutive month of expanding output, accruing and advance of 520.3% in this period. Even with these recent positive figures, the segment was still 2.8% below the level of last February.

The sectors producing capital goods (7.0%), semi and non-durable consumer goods (3.7%) and intermediate goods (1.3%) also rose this month, all of them expanding for the fifth consecutive month and accruing gains of 93.2%, 30.7% and 26.9%, respectively, in this period.

Moving average advances 4.8% in quarter ended in September

Still in the seasonally-adjusted series, the quarterly moving average for the overall industry advanced 4.8% in the quarter ended in September, after also advancing in August (7.1%) and July (9.0%), when it interrupted the predominantly downward trend started in November 2019.

Among the major economic categories, still in relation to the marginal movement of this index, durable consumer goods (17.1%) registered the most intense advance in September, after growing 34.4% in August and 60.7% in July, when it interrupted the negative behavior started in March 2020.

The sectors producing capital goods (8.8%), intermediate goods (4.5%) and semi and non-durable consumer goods (3.3%) also recorded positive rates in September 2020, the first two advancing for the third consecutive month and accruing gains of 43.7% and 18.4%, respectively, in this period; and the last one maintaining the upward trend started in May 2020.

Industry advanced 3.4% in relation to September 2019

Compared with the same month of 2019, the industrial sector grew 3.4% in September 2020, with positive figures in three out of the four major economic categories, 17 out of the 26 sectors, 54 out of the 79 groups and 58.0% of the 805 products surveyed. It is worth mentioning that September 2020 had the same number of business days as the same month a year ago (21).

Among the activities, the major influences on the overall industry came from food products (11.1%) and coke, petroleum products and biofuels (7.8%).

Other relevant positive impacts came from the sectors of beverages (13.8%); machinery and equipment (8.1%); computer equipment, electronic and optical products (15.4%); rubber and plastic products (8.6%); electrical machinery and apparatus (12.6%); fabricated metal products (9.2%); pharm-chemicals and pharmaceuticals (11.2%); other chemicals (3.7%); pulp, paper and paper products (5.3%); tobacco products (53.8%); wood products (15.1%) and textiles (9.3%).

Among the nine activities that reduced their output compared with September 2019, that of motor vehicles, trailers and bodies (-13.7%) exerted the biggest negative influence on the industry average, pressed, to a large extent, by the items cars, tractor trucks for trailers and semi-trailers, trucks and car pieces.

Other negative contributions came from mining and quarrying industries (-4.1%), manufacture of wearing apparel and accessories (-11.6%), printing and reproduction of recorded media (-39.2%), maintenance, repair and installation of machinery and equipment (-19.8%) and other transportation equipment (-19.3%).

Among the major economic categories, intermediate goods (5.5%) recorded the sharpest advance over September 2019. The segments of durable consumer goods (2.2%) and semi and non-durable consumer goods (1.8%) also expanded their output, whereas the sector of capital goods (-2.0%) posted the only negative rate this month.

The segment of intermediate goods grew 5.5% in September over the same month of 2019, after advancing in August (1.9%) and July (1.8%), when it interrupted four consecutive months of negative rates in this comparison. The result of this month was mainly explained by the advances in food products (20.6%), coke, petroleum products and biofuels (13.1%), non-metallic mineral products (9.5%), rubber and plastic products (7.4%), other chemicals (4.1%), pulp, paper and paper products (7.4%), fabricated metal products (5.2%), textiles (11.9%) and machinery and equipment (2.9%).

The negative pressure came from motor vehicles, trailers and bodies (-15.8%), mining and quarrying industries (-4.1%) and basic metals (-2.1%). Also in this economic category, it is worth mentioning the results recorded by the group of typical input for civil construction (10.2%), which posted the third consecutive  positive rate and the steepest one since May 2019 (14.4%), and packaging (6.4%), which grew once again after five consecutive months of dropping production.

Having advanced 2.2% in the monthly index of September 2020, durable consumer goods interrupted seven consecutive months of negative rates in this type of comparison. The positive impacts came from brown goods (33.7%), white goods (31.1%), motorcycles (15.6%) and the groups of furniture (13.8%) and other house appliances (24.3%). On the other hand, this sector was particularly pressed by the reduced production of cars (-14.9%).

The sector of semi and non-durable consumer goods advanced 1.8% in September 2020, interrupting eight consecutive months of negative rates in this type of comparison. The positive performance this month was explained, to a great extent, by the expansion reported in the group of food and beverages for domestic consumption (4.9%).

The sector of capital goods retreated 2.0% in September 2020 over the same period last year, the eighth consecutive negative result in this type of comparison, though the less intense in this sequence. The sector was influenced by the drop reported in the group of capital goods for transportation equipment (-15.0%), mainly pressed by the reduced manufacture of planes, tractor trucks for trailers and semi-trailers and trucks.

The other negative rates were in capital goods for mixed use (-5.1%) and for electricity (-3.5%). Conversely, the positive impacts were registered by the groups of capital goods for industrial use (7.5%), for agriculture (18.2%) and for construction (6.8%).

Industrial output retreats 0.6% in third quarter

The industrial sector retreated 0.6% in the third quarter of 2020 and remained with the negative behavior observed since the last quarter of 2018 (-1.3%), all comparisons against the same period of the previous year. The reduction in the intensity of loss, noticed in the industrial output between the second (-19,4%) and the third quarter of 2020 (-0.6%), was explained by the gain of pace in the four major economic categories: durable consumer goods (from -64.8% to -8.2%), capital goods (from -38.6% to -11.1%), intermediate goods (from -12.6% to 3.1%) and semi and non-durable consumer goods (from -16.6% to -3.1%).

All the major economic categories retreated in the year.

In the cumulative index over the same period of 2019, the industrial sector dropped 7.2%, with negative figures in four out of the four major economic categories, 20 out of the 26 sectors, 64 out of the 79 groups and 68.4% of the 805 products surveyed.

Among the activities, that of motor vehicles, trailers and bodies (-37.0%) exerted the biggest negative influence on the industry average, pressed, to a large extent, by the items cars, trucks, tractor trucks for trailers and semi-trailers, car pieces and vehicles for transportation of goods.

It is also worth highlighting the negative contributions from the sectors of basic metals (-12.9%); manufacture of wearing apparel and accessories (-31.8%); machinery and equipment (-11.9%); leather, travel articles and footwear (-28.5%); other transportation equipment (-31.2%); mining and quarrying industries (-2.3%); non-metallic mineral products (-7.5%); rubber and plastic products (-7.0%); printing and reproduction of recorded media (-37.9%); miscellaneous manufacturing (-20.3%); maintenance, repair and installation of machinery and equipment (-17.4%); and textiles (-14.0%).

Among the six activities that increased the production, the major influences on the whole industry were recorded by food products (5.8%) and coke, petroleum products and biofuels (4.5%).

Among the major economic categories, the results for 2020 decelerated for durable consumer goods (-26.7%) and capital goods (-17.9%). The result of durable consumer goods was pressed by the reduced manufacture of cars (-42.8%) and of capital goods, by capital goods for transportation equipment (-32.3%) and for industrial use (-12.0%).

The sectors producing semi and non-durable consumer goods (-7.6%) and intermediate goods (-3.1%) also posted negative rates in the cumulative index in the year.