Industrial output drops by 0.6% in July
September 05, 2023 09h00 AM | Last Updated: September 08, 2023 02h27 AM
In July 2023, in the seasonally-adjusted series, the national industrial output dropped by 0.6% from June. There was a decrease of 1.1% from July 2022.
In the year, industry has a negative cumulative rate (-0.4%) against the same period in 2022, and a null change (0.0%) cumulative in the last 12 months.
|July 2023/ June 2023||-0.6%|
|July 2023/ July 2022||-1.1%|
|Cumulative in the year||-0.4%|
|Cumulative in 12 months||0.0%|
|Quarterly moving average||-0.1%|
Output decreased in three of the four broad economic categories and 15 of the 25 subsectors surveyed. Among the activities, the most important negative influences came from motor vehicles, trailers and bodies (-6.5%), mining and quarrying industries (-1.4%), computer equipment, electronic and optical products (-12.1%) and machinery and equipment (-5.0%). Other positive contributions came from manufacture of wearing apparel and accessories (-8.0%), metal products (-4.8%) and rubber products and plasct material (-3.8%).
On the other hand, among the nine activities recording increase in output, pharmaceuticals (8.2%), food products (0.9%) and coke, petroleum products and biofuels (0.7%) accounted for the main impacts in July 2023.
|Industrial Output Indicators by Broad Economic Category - Brazil - July 2023|
|Broad Economic Categories||Change (%)|
|July 2023 / June 2023*||July 2023 / July 2022||Cumulative in january - July||Cumulative in
|Semi-durables and Non-durables||1.5||-0.3||1.4||1.3|
|Source: IBGE, Diretoria de Pesquisas, Coordenação de Estatísticas Conjunturais em Empresas
Among the broad eonomic categories, also against the previous month, capital goods (-7.4%) and durable consumer goods (-4.1%) recorded the main negative rates in July 2023, with a cumulative loss of 9.5% in two consecutive months of drop in output. The sector of intermediate goods (-0.6%) also dropped in July and had its second consecutive month with a drop in output, a period marked by a decrease of 0.8%.
On the otehr hand, the only increase in the month came from semi and non-durable consumer goods (1.5%), which intensified the increase of 0.7% observed last June.
Quarterly moving average changes by -0.1%
Also in the seasonally-adjusted series, the evolution of the quarterly moving average for the industry overall recorded a negative change of 0.1% in the quater ended June 2023, against the previous month. That interrupted the sequence of positive results registered last May (-0.3%), April (0.1%) and March (0.2%).
Among the broad economic categories, also in the seasonally-adjusted series, capital goods (-1.9%) recorded the lowest negative result in the month and kept the downward trend which started in March 2023. The sectors of durable consumer goods (-0.4%) and of intermediate goods |(-0.3%) also recorded negative results in July 2023.
The only positive result in the month was in the segment of semi-durable and non-durabe consumer goods (0.4%), after an increase of 0.3% last June.
From July 2022, there were decreases in three of the four major economic categories
Against the same month in 2022, industry dropped by 1.1% in July 2023, and interrupted a sequence of two months of positive rates: 0.2% in June and 1.9% in May 2023. The negative results hit three out of four broad economic categories, as well as 17 out of 25 sectors, 52 of the 80 groups and 57.0% of the 789 products surveyed. It is worth mentioning that June 2023 (21 days) had the same number of business days as the same month a year ago (21).
The main negative contributions to the industry overall came from motor vehicles, trailers and bodies (-9.5%), computer equipment, electronic and optical products (-25.3%), chemicals (-6.7%) and machinery and equipment (-9.8%).
Other negative impacts came from electrical machinery and apparatuses (-10.1%), pulp, paper and paper products (-5.7%), manufacture of wearing apparel and accessories (-9.6%), pharmaceuticals (-5.6%), rubber products and plastic material (-3.7%), basic metals (-2.4%), non-metallic mineral products (-4.,0%) and furniture (-9.0%).
Also against july 2022, considering the eight activities recording increase, mining and quarrying industry (7.0%) and food products (4.5%) accounted for the main contributions. Other highlights are the positive contributions of coke, petroleum products and biofuels (1.6%), printing and reproduction of recorded media (29.8%) and other transportation equipment (9.8%).
Capital goods records the biggest decrease from July 2022
Also against July 2022, capital goods (-16.9%) recorded the main drop among the broad economic categories. The segments of durable consumer goods (-3.5%) and of semi and non-durable goods (-0.3%) also recorded negative rates.
Producers of intermediate goods, having recorded null change (0.0%) in July 2023, repeated the same level as in 2022.
Cumulative index in the year reaches -0.4%
As for the cumulative index in the year from the same period in 2022, the industrial sector dropped by 0.4%, with negative figures in two of four broad economic categories, 17 out of the 25 sectors, 47 out of 80 groups and 55.5% of the 789 products surveyed.
Among the activities, the main negative influences on the industry overall came from chemicals (-8.3%), computer equipment, electronic and optical products (-12.5%), electrical machinery and apparatus (-11.4%), machinery and equipment (-6;0%) and non-metallic mineral products (-7.7%).
It is also worth highlighting the negative contributions recorded by motor vehicles, trailers and bodies (-3.3%), wood (-15.5%), manufacture of wearing apparel and accessories (-8.9%), basic metals (-2.7%), and fabricated metal products (-3.4%).
Also against July 2022, among the eight activities with output increase, the main contributions to the industry average came from coke, petroleum products and biofuels (3.5%) and food products (2.9%).
Other important positive impacts were registered by pharmaceuticals (8.0%) and other transportation equipment (15.0%).
Among the broad economic categories, the cumulative index in 2023 recorded reduced dynamism in capital goods (-10.8%). Producers of intermediate goods (-0.5%) also recorded a negative result with a significant loss than reported by the industry average (-0.4%).
On the other hand, the hike in the year came from durable consumer goods (4.3%), driven by household appliances (11.8%), cars (31%) and motorcycles (15.6%6%). The sector of semi and non-durable consumer goods (1.4%) was also positive in the year.