Industrial production increases by 1.2% in November

January 08, 2021 09h00 AM | Last Updated: January 13, 2021 01h52 AM

In November 2020, industrial production increased by 1.2% against October, in the seasonally adjusted series. After seven months recording increases, the sector had a cumulative 40.7%, making up for the decrease of 27.1% registered between March and April, which had led production to its lowest level in the series. Despite the positive performance in the last few months, industry is still 13.9% below the record level of May 2011.

Against November 2019, in the seasonally adjusted series, industry rose 2.8%. As a result, the sector has a cumulative decrease of 5.5% in the year and a decrease of 5.2% in 12 months.

November 2020 / October 2020 1.2%
November 2020 / November 2019 2.8%
Cumulative in the year -5.5%
Cumulative in 12 months -5.2%
Quarterly Moving Average 1.7%

Industrial activity in Brazil recorded increases for seven months in a row, with a cumulative increase of 40.7% up to November. It also eliminated the loss of 27.1% registered in March and April, when social distancing measures were very strict due to the Covid-19 pandemic. With these results, the industrial sector is 2.6% above the February level.

The advance of 1.2% in industrial activity from October and November 2020 reached all the major economic categories and 17 of the 26 subsectors surveyed.

Industrial Production Indicators by Major Economic Categories
Brazil - November 2020
Major Economic Categories Change (%)
November 2020 October 2020* November 2020 November 2019 Cumulative in January-November Cumulative in 12 months
Capital Goods 7.4 12.8 -13.1 -12.6
Intermediate Goods 0.1 3.6 -1.8 -1.9
Consumer Goods 2.1 -0.1 -9.9 -9.1
Durable goods 6.2 2.7 -22.0 -20.5
Semi and non-durable goods 1.5 -0.9 -6.5 -5.9
General industry 1.2 2.8 -5.5 -5.2
Source: IBGE, Diretoria de Pesquisas, Coordenação de Indústria   *Série com ajuste sazonal

Produção do setor de veículos automotores cresce pelo sétimo mês seguido  

Among the activities, the most relevant influence was that of motor vehicles, trailers and bodies (11.1%). This sector had a cumulative increase of 1,203.2% in seven consecutive months of growth in production, surpassing by 0.7% the February level. 

Other relevant positive contributions to industry came from other chemical products (5.9%), Manufacture of wearing apparel and accessories (11.3%), Machinery and equipment (4.1%), Printing and reproduction of recorded media (42.9%), Leather, travel articles and footwear (7.6%), Beverages (3.1%), Fabricated metal products (3.0%) and Other transportation equipment (12.8%) and Basic Metals (1.6%).

In contrast, among the nine activities that fell, the main negative impacts came from Food products (-3.1%), with a cumulative reduction of 5.9% in two consecutive months of drop, eliminating, this way, the increase of 4.0% registered between July and September; Mining and quarrying (-2.4%), with the third consecutive month of drop in production, a period that added a loss of 10.4%; and Pharmaceuticals (-9.8%), which interrupted two months of positive results, when it had cumulative expansion of 10.8%.

Among the major economic categories, in relation to November 2020, Capital goods (7.4%) and Durable consumer goods (6.2%) had the biggest positive rates, both recording the seventh consecutive month of expansion and with cumulative advances of 129.7% and 550,7% in this period, respectively. Capital goods and Durable consumer goods are 12.2% and 2.7% above the February level.

The sectors producing Semi and non-durable consumer goods (1.5%) and Intermediate goods (0.1%) also grew in November, reversing the negative results observed in the previous month: -0.1% and -0.4%, respectively.

Moving average advances 1.7% in the quarter ended November

Also in the seasonally-adjusted series, the quarterly moving average for the industry advanced 1.7% in the quarter ended November 2020 against the previous month level, after also having advanced in October (2.4%), September (4.8%), August (7.0%) and July (9.0%).

Among the major economic categories, Capital goods (7.8%) and Durable consumer goods (5.8%) recorded the most intense advances in the month, remaining with the positive behaviour since July 2020 and accumulating, in this period, gains of 68.3% and 180.1%, respectively.

The sectors of Semi and non-durable consumer goods (1.7%) and of Intermediate goods (0.3%) also recorded positive rates in November. Semi and non-durable consumer goods kept their upward trend started in May 2020. Intermediate goods advanced for the fifth consecutive month, with a cumulative a growth of 19.5% in this period. 

Industry advanced 2.8% in relation to November 2019

In the comparison with the same month in 2019, the industrial sector advanced 2.8% in November 2020, with positive results in three out of the four major economic categories, 16 out of the 26 sectors, 57 out of the 79 groups and 63.0% of the 805 products surveyed. November 2020 had the same number of business days as November in the previous year (20 days). 

Among the activities, the main influences on the industry total came from Machinery and equipment (15.9%), Coke, petroleum products and biofuels (4.9%), Other chemical products (8.4%), Beverages (8.4%) and Fabricated metal products (13.6%).

Other relevant positive impacts came from the sectors of Non-metallic mineral products (10.7%), Electrical machinery and apparatus (13.6%), Basic metals (5.4%), Rubber and plastic products (6.5%), Computer equipment, electronic and optical products (8.7%), Wood products (14.8%), Textiles (10.7%), Leather, travel articles and footwear (7.9%) and Pulp, paper and paper products (3.5%).

On the other hand, still in the comparison with November 2019, among the ten activities that recorded reduction in production, the sector of Mining and quarrying industries (-7.5%) exerted the biggest negative influence on the industry average, influenced, to a large extent, by the items crude petroleum oil and pelleted or sintered iron ore.

Other highlights are negative contributions recorded by the segments of Pharmaceuticals (-8.7%), Printing and reproduction of recorded media (-26.3%), Other transportation equipment (-18.3%), Maintenance, repair and installation of machinery and equipment (-10.8%) and Vehicles, trailers and bodies (-1.0%).

Among the major economic categories, Capital goods (12.8%) recorded, in November 2020, the sharpest advance. The segments of Intermediate goods (3.6%) and of Durable consumer goods (2.7%) also showed expansion, while the sector of Semi and non-durable consumer goods (-0.9%) registered the only negative rate in the month. 

All four major economic categories have cumulative decrease this year

In the cumulative index in the year, against the same period in the previous year, the industrial sector showed a reduction of 5.5%, with negative results in all major economic categories, 20 out of the 26 sectors, 59 out of the 79 groups and 63.1% of the 805 products surveyed.

Among the activities, motor vehicles, trailers and bodies (-31.5%) exerted the biggest negative influence on industry, due, to a large extent, to the items cars, tractor trucks for trailers and semi-trailers, trucks and car pieces.

Other negative contributions came from the segment of Manufacture of wearing apparel and accessories (-26.2%), Basic metals (-9.8%), Mining and quarrying industries (-3.2%), Leather, travel articles and footwear (-21.5%), Machinery and equipment (-7.1%), Other transportation equipment (-30.2%), Printing and reproduction of recorded media (-36.5%), Maintenance, repair and installation of machinery and equipment (-16.6%), miscellaneous manufacturing (-17.6%), Rubber and plastic products (-4.2%), Textiles (-9.3%) and non-metallic mineral products (-3.9%).

Among the six activities on an upward trend, the main influences came from Food products (4.7%) and coke, petroleum products and biofuels (4.8%).

Among the major economic activities, the main decreases were those of Durable consumer goods (-22.0%), influenced by the reduction in car manufacturing (-37.4%), and in Capital goods (-13.1%), due to capital goods for transportation equipment (-26.2%) and for industrial purposes (-8.1%).

The sector of Semi and non-durable consumer goods (-6.5%) and of Intermediate goods (-1.8%) also accumulated negative rates this year, with the first one recording a drop below the national average (-5.5%); and the second one recording the leastt significant drop among the major economic categories.