In December 2020, industrial production grew 0.9% compared to November, in the seasonally adjusted series. After eight months of growth, the sector accumulated growth of 41.8%, eliminating the 27.1% loss registered between March and April, which had brought production to its lowest level in the series.  

Even with the positive performance in recent months, industry is still 13.2% below its record level, reached in May 2011. In relation to December 2019, in the non-adjusted series, industry advanced 8.2%. As a result, the sector accumulated a 4.5% drop in 2020, the second negative result in a row after the loss recorded in 2019 (-1.1%). In the last quarter of the year, the sector advanced 3.4%.

The national industrial activity had eight consecutive months of growth, accumulating an increase of 41.8% in December. Thus, it offset the 27.1% loss registered in March and April, a time stricter social distancing to fight the Covid-19 pandemic. With these results, the industrial sector is 3.4% above the February 2020 level.

The 0.9% increase in industrial activity from November to December reached three of the four major economic categories and 17 of the 26 surveyed sectors.

Motor vehicle production grows for the eighth month in a row

Among the activities, the most relevant positive influences, in comparison with November (seasonally-adjusted series), were Basic metals (19.0%), Motor vehicles, trailers and bodies (6.5%) and Mining and quarrying industries (3.7%). Basic metals increased 58.6% between July and December. Motor vehicles, trailers and bodies accumulated an expansion of 1,308.1% in eight consecutive months of growth in production, eliminating, thus, the loss of 92.3% recorded in the period from March to April. The Mining and quarrying industry, on the other hand, interrupted three months of consecutive negative results, which accumulated a reduction of 12.3%.

Other important positive contributions to the industry came from Machinery and equipment (6.0%), Textile products (15.4%), Manufacture of wearing apparel and accessories (11.5%), Rubber and plastic products (4.8%), Pharmaceuticals (8.4%), Computer equipment, electronic and optical products (4.7%) and Metal products (2.9%).

On the other hand, among the nine activities that fell in comparison with November, the main negative impacts came from Food products (-4.4%), which accumulated a reduction of 11.0% in three months of decline; Beverages (-8.1%), which reversed the 1.7% growth registered in November; and Coke, petroleum products and biofuels (-1.3%), which accumulated a 3.2% loss in three consecutive months of production drop, which eliminated part of the 10.1% increase accumulated from July to September.

Among the major economic categories, in relation to November 2020, Capital goods (2.4%) and Durable consumer goods (2.4%) had the highest positive rates, with both making the eighth consecutive month of expansion and accumulating, in this period, advances of 134.9% and 565.7%, respectively. Capital goods and durable consumer goods are 14.9% and 5.1% above the February level.

The sector producing intermediate goods (1.6%) also registered growth in December and above the industry average (0.9%), reversing the negative results of October (-0.1%) and November (-0.2 %). On the other hand, the segment of semi and non-durable consumer goods, with a decrease of 0.5%, pointed out to the only negative rate of the month and partially offset the 1.2% increase in November.

Moving average advances 1.0% in the quarter ended in December

In the seasonally-adjusted series, the quarterly moving average of the industry increased 1.0% in the quarter ended in December 2020, compared to the level of the previous month, after also increasing in the months of November (1.6%), October (2.4%), September (4.8%), August (7.1%) and July (9.0%).

Among the major economic categories, Capital goods (5.6%) and Durable consumer goods (3.7%) had the sharpest advances in the month, remaining with the positive behavior present since July 2020 and accumulating, in this period, gains of 77.4% and 190.6%, respectively.

The sectors of intermediate goods (0.4%) and semi and non-durable consumer goods (0.1%) also showed positive rates in December. Intermediate goods advanced for the sixth consecutive month, accumulating growth of 20.5%. Semi and non-durable consumer goods kept the upward trend started in May.

Industry increases 8.2% compared to December 2019

In comparison with the same month of 2019 (non-adjusted series), the industrial sector advanced 8.2% in December 2020, with positive results in all four major economic categories, 19 out of 26 branches, 62 out of 79 groups and 68.9% of the 805 products surveyed. December 2020 had 22 workdays, one more than the same month last year (21 days).

Among the activities, the main influences on the total of the industry were Motor vehicles, trailers and bodies (22.6%), Machinery and equipment (37.4%) and Basic metals (28.9%). Other important positive impacts were noted in the sectors of Metal Products (23.6%), Rubber and Plastic Products (18.6%), Non-Metallic Mineral Products (17.5%), Other Chemical Products ( 9.9%), Computer equipment, electronic and optical products (28.8%), Machinery, electrical appliances and materials (18.8%), Textile products (29.7%), Pharmaceutical products (17, 5%), Leather, travel goods and footwear (21.5%), Manufacture of wearing apparel and accessories (11.8%), Wood products (16.8%) and Furniture (16.3%).

On the other hand, also in the comparation with December 2019, among the seven activities that showed reduction in production, Mining and quarrying industries (-3.9%) and Printing and reproduction of recorded media (-49.8%) exerted the greatest negative influences on the formation of the industry average.

The negative contributions of the Food Products (-1.7%), Other transport equipment (-12.6%) and Maintenance, repair and installation of machinery and equipment (-8.0%) sectors also stand out.

Among the major economic categories, Capital goods (35.4%) and Durable consumer goods (14.1%) registered, in December 2020, the sharpest advances. The segments of intermediate goods (8.2%) and semi- and non-durable consumer goods (1.8%) also showed expansion in production, while intermediate goods repeated the result of the total industry (8.2%).Semi and non-durable consumer goods had more moderate growth among the major economic categories.

In the last quarter of the year, the sector increased 3.4%.

Industry advanced 3.4% in the last quarter of 2020, in comparison with the same period of the previous year, interrupting negative results since the last quarter of 2018 (-1.3%). This increase in the production pace, from the third (-0.4%) to the fourth quarter (3.4%), comes from the gain in the four major economic categories, especially in Capital goods (from -10.3% to 14.8%), driven by the greater manufacture of capital goods for transportation equipment (7.1%) and for industrial purposes (14.9%), and in Durable consumer goods, driven by automobiles (-8.4%).

The sectors producing semi and non-durable consumer goods (from -3.1% to -1.1%) and intermediate goods (from 3.2% to 4.9%) also showed greater dynamism between the two periods, but with the former still keeping a sequence of negative rates that started from January to March 2020; and the latter recording the second consecutive quarter of growth.

Industry accumulates reduction of 4.5% in the year

In terms of the cumulative index in the year, compared to the same period of the previous year, the industrial sector showed a reduction of 4.5%, with negative results in all four major economic categories, 20 of the 26 segments, 53 of the 79 groups and 60.6% 805 products surveyed.

Among the activities, Motor vehicles, trailers and bodies (-28.1%) exerted the most intense negative influence on the industry, influenced, to a great extent, by motor vehicles, tractor-trailer for trailers and semi-trailers, trucks and auto parts.

Other negative contributions came from the Manufacture of wearing apparel articles and accessories (-23.7%), Mining and quarrying industries (-3.4%), Basic metals (-7.2%), Leather, travel goods and footwear (- 18.8%), Other transportation equipment (-29.1%), Printing and reproduction of recorded media (-38.0%), Maintenance, repair and installation of machinery and equipment (-16.0%), Miscellaneous products (-16.7%), Machinery and equipment (-4.2%), Textile products (-6.6%), Rubber and plastic products (-2.5%) and Non-metallic mineral products (-2.3%).

Among the six activities on the rise, the main influences came from Food products (4.2%) and Coke, petroleum products and biofuels (4.4%).

Among the major economic categories, the highlights were the decreases in Durable consumer goods (-19.8%), influenced by the reduction in car manufacturing (-34.6%), and Capital goods (-9.8%), due to capital goods for transportation equipment (-22.7%) and for industrial purposes (-5.1%).

The sectors of Semi- and non-durable consumer goods (-5.9%) and Intermediate goods (-1.1%) also accumulated negative rates in the year, with the former showing a sharper drop than the national average (-4.5%); and the second registering the less intense loss among the major economic categories.