In July 2020, industrial production increased by 8.0% against the June 2020 figure (seasonally-adjusted series), an increathird straight month. That was enough, however, to make up for the cumulative 27.0% loss registered in March and April, which led to the lowest output level in the series.

Industry recorded a 3.0% decrease against against July 2020, with the ninth negative result in this type of comparison and a cumulative loss of 9.6% in the year. In 12 months, it registered a 5.7% drop, the most significant one since December 2016 (-6.4%) and accelerated decrease against preceding months. The full edition of the Monthly Survey of Industry is on the right of the page.

Industrial activity in the country recorded increase for three months straight. That counterbalanced part of the 27.0% cumulative drop of March and April, due to the COVID 19 pandemic, which affected the production process at several industrial units in Brazil.

The 8.0% increase in industrial activity, from June to July 2020, reached all the major economic categories. Besides, there was expansion in 25 of the 26 subsectors surveyed.

Production of motor vehicles advances 43.9% against June

Regarding the activities, the most relevant positive influence against the previous month came from Motor vehicles trailers and bodies, which registered an increase of 43.9% in July 2020, due, to a great extent, by the resumption of activities after a period of interruption during the pandemic. The sector had a cumulate increase of 761.3% in three straight months, though it is still 32.9% below the level reached last February.

Other positive contributions came from Basic metals (18.7%), Mining and quarrying industry (6.7%), Machinery and equipment (14.2%), Coke, petroleum products and biofuels (3.8%), Other chemicals (6.7%), Food products (2.2%), Metal products (12.4%), Non-metallic mineral products (10.4%),  Manufacture of wearing apparel and accessories (29.7%), Rubber and plastic products (9.8%), Textiles (26.2%), Computer, electronic and optical products (13.8%), Electric machines, appliances and equipment (12.0%), Miscellaneous products (27.9%) and Beverages (4.6%).

On the other hand, the sector of Printing and reproduction of media, with a decrease of 40.6%, recorded the only negative result in the month. The activity had increased by 77.1% in June, when it interrupted a period of two months of production decrease, with a cumulative loss of 27.7%.

Among the major economic categories, against June 2020, durable consumer goods, having increased 42.0%, registered the main positive rate in July 2020. That was the third month with increase of production, resulting in a cumulative advance by 443.8% in the period. In spite of that, the segment was still 15.2% below the level of February.

The sectors producing capital goods (15.0%) and intermediate goods (8.4%) advanced above the average of industry (8.0%). Semi and non-durable consumer goods (4.7%) also recorded a positive rate, but recording the least significant increase among the economic categories. All those segments advanced for the third month straight and recorded cumulative increases of 70.5%, 21.1% and 24.0%, respectively, though still below the level of last February. 

Quarterly moving average up 8.8% in quarter ended July

Also in the seasonally adjusted series, the quarterly moving average for the industry overall increased by 8.8% in the quarter ended July 2020 against the level in the previous month, interrupting a series of decreases since November 2019. Expansion in the month was the highest since the start of the time series.

Among the major economic categories, durable consumer goods (64.0%) recorded the main increase in July 2020 and interrupted the negative behavior that has been observed since December 2019, with a cumulative decrease of 64.8% in the period.

The sectors of capital goods (18.6%), semi and non-durable goods and (7.3%) and intermediate goods (6.7%) also indicated positive rates in July 2020 and the most significant advances in the time series. The first one interrupted a series of drops that started in June 2018; the second intensified the 1.3% hike of the previous month; and the third one counterbalanced part of the 12.8% cumulative decrease of March-June 2020.

Industry fell by 3.0% against July 2019

In comparison with the same month in 2019, the industrial sector fell by 3.0% in July 2020, with negative results in three of the four major economic categories, 11 of the 26 subsectors, 49 of the 79 groups and 56.6% of the 805 products surveyed. July 2020 had the same number of business days as in July last year (23).

Among the activities, Motor vehicles, trailers and bodies (-34.7%) accounted for the main negative contribution to the average of industry. Other negative contributions came from the subsectors of Wearing apparel and accessories (-34.6%), Basic metals (-11.2%), Leather, travel articles and footwear (-33.4%), Machinery and equipment (-10.0%), Printing and reproduction of reported media (-48.9%), Maintenance, repair and installation of machinery and equipment (-21.2%), Other transportation equipment (-16.0%) and Miscellaneous products (-12.0%).

Also against July 2019, among the fifteen rising activities, the main influential subsectors to the industry overall were Food products (9.5%), Beverages (16.0%), Coke, petroleum products and biofuels (4.1%), Other chemicals (4.8%), Computer, electronic and optical equipment.(9.1%), Electric machines, appliances and equipment (7.2%), Toiletries, soaps, cleaning and personal hygiene products (10.9%) and Mining and quarrying industry (0.9%).

Among the major economic categories, also against July 2019, durable consumer goods (-16.9%) and capital goods (-15.4%) registered the most significant decreases. The segment of semi and non-durable consumer goods (-5.2%) also recorded drops. Intermediate goods (1.4%), in turn, accounted for the only positive rate in the month.

Durable consumer goods, having decreased by 16.9%, marked the sixth consecutive negative result in the month/same month a year ago comparison. In July, the sector has been influenced by the reduced production of Cars (-38.4%). On the other hand, positive impacts came from "White goods" (28.7%) and "Brown goods" (27.3%), Motorcycles (6.6%) and the groups Furniture (5.7%) and Other household appliances (2.6%).

The segment of capital goods, with a decrease of 15.4%, had its sixth negative rate in a row. In July 2020, the sector was greatly influenced by the decrease observed in capital goods for transportation equipment (-32.1%). The other negative rates were registered by capital goods for industrial use (-12.8%), for construction, for mixed use (-2.9%) and for electricity (-0.7%). On the other hand, the only positive impact came from agricultural capital goods (12.1%).

And the segment of semi and non-durable goods, having decreased by 5.2%, recorded the seventh negative rate in comparison with the same month a year ago. The latest result was influenced by decreases in the groups of semi-durable goods (-24.8%) and fuels (-13.1%). Non-durable goods (-1.7%) also recorded a decrease in production. On the other hand, Elaborated beverages for domestic consumption (4.0%) was responsible for the only positive rate in this category.

The production of intermediate goods, with an increase of 1.4%, interrupted a series of four months with negative rates against the same month a year ago. The result of July 2020 was influenced by advances in the products associated to the activities of Food products (18.7%), Coke, petoleum products and biofuels (13.9%), Other chemicals (5.4%), Mining and quarrying industry (0.9%) and Pulp, paper and paper products (1.5%).

Negative contributions came from Motor vehicles, trailers and bodies  (-33.5%), Basic metals (-11.2%), Machinery and equipment (-13.1%), Rubber products and plastic material (-3.4%), Textiles (-7.2%) and Metal products (-2.4%).

It is worth mentioning, in this economic category, typical inputs for civil construction (3.4%), which interrupted a series of seven months straight recording decrease; and of Packages (-0.6%), with the fourth negative rate in a row.

All the major economic categories record cumulative decreases in the year 

The cumulative index in the year, against the same period in 2019, fell 9.6%, with negative result in 4 of the 4 major economic categories, 20 of the 26 subsectors, 64 of the 79 groups and 74.0% of the 805 products surveyed. 

Among the activities, Motor vehicles, trailers and bodies (-42.1%) accounted for the biggest contribution to the formation of the industry average. It is also worth mentioning the negative contributions from Basic metals (-15.1%), Manufacture of wearing apparel and accessories (-36.4%), Machinery and equipment (-15.7%), Leather, travel articles and footwear (-33.7%), Rubber products and plastic material (-11.3%), Non-metallic mineral products (-11.6%), Other transportation equipment (-33.2%), Metal products (-9.7%), Textiles (-19.8%), Beverages (-8.1%), Computer, electronic and optical equipment  (-12.0%), Mining and quarrying industry (-2.2%) and Other chemicals (-4.4%).

On the other hand, among the six activities recording increase, the main contributions to the industry overall came from Food products  (4.9%) and Coke, petroleum products and biofuels (3.8%).

Among the major economic categories, the profile of results for the first seven months of 2020 show lower dynamism for durable consumer goods (-33.8%) and capital goods (-20.3%), due, to a great extent, to the reduced production of cars (-49.4%) and household appliances (-8.4%) in the former; and capital goods for transportation equipment (-35.5%) and for industrial use (-15.7%), in the latter.

The sectors producing semi and non-durable consumer goods (-9.4%) and intermediate goods (-5.3%) also recorded negative rates in the cumulative index in the year, but with decreases below the national average (-9.6%).