In October 2020, industrial production grew 1.1% compared to September, in the seasonally adjusted series, after increases in May (8.7%), June (9.6%), July (8.6%), August (3.4%) and September (2.8%). After six months of high, the cumulative growth was 39.0%, eliminating the 27.1% loss that had been accrued between March and April, taking industrial production to the lowest level of the series. Despite the positive performance in recent months, the industrial sector is still 14.9% below the record level reached in May 2011.

In the seasonally-unadjusted series, the industry advanced 0.3% over October 2019, after increasing 3.7% last September, when it interrupted ten consecutive negative months in this comparison. As a result, the sector accrued a loss of 6.3% in the year and a drop of 5.6% in 12 months, a slightly higher loss than that accrued in 12 months until September (-5.5%).

The industrial activity had six consecutive months of highs, accumulating a high of 39.0%. As a result, it offset the cumulative loss of 27.1% of March and April, due to Covid-19 pandemic effects. With this result, the industrial sector is 1.4% higher than it was in February.

The 1.1% advance of industrial activities between September and October of 2020 achieved two of the four major economic categories. Furthermore, more than half (15) of the 26 surveyed segments recorded an increase in the production.

Vehicle production advances 1,075.8% in six months

Among the activities, the major positive influence in relation to the previous month was motor vehicles, trailers and bodies (4.7%). The sector accumulated a growth of 1,075.8% in six consecutive months of production increase, although it was still 9.1% lower than February results.

Other significant positive contributions for the industry were Basic Metals (3.1%), Pharmaceutical products (4.5%), Machinery and Equipment (2.2%), Fabricated metal products (2.8%), Leather, travel articles and footwear (5.7%), Non-metallic mineral products (2.3%), Manufacture of wearing apparel and accessories (5.0%) and  Rubber and plastic products (2.1%). Those activities had already recorded advances in September.

On the other hand, among the eleven activities that dropped, the major negative results in the month were Food products (-2.8%), which interrupted three consecutive months of highs (increase of 4.3%), and Mining and Quarrying industries (-2.4%), which recorded the second consecutive month of decrease, accumulating drops of 7.0%. Other major drops were Coke, petroleum products and biofuels (-1.2%), Tobacco products (-18.7%) and Other chemicals products (-2.3%).

Among the major economic categories, in relation to September 2020, Capital goods (7.0%) and Durable consumer goods (1.4%) recorded positive rates, with both in the sixth consecutive month of positive results and accumulating, in this period, highs of 111.5% and 506.7%, respectively. Capital goods were 3.5% above February results, but Durable consumer goods were still 4.2% below.

On the other hand, Intermediate goods (-0.2%) and Semi and non-durable consumer goods (-0.1%) recorded negative results in October, interrupting five consecutive months of growth in production, period with cumulative gains of 26.6% and 30.4%, respectively.

Moving average advances 2.4% in the quarter ended in October

Still in the seasonally-adjusted series, the quarterly moving average for the industry total advanced 2.4% in the quarter ended in October 2020 against the previous month level, after also having advanced in September (4.8%), August (7.0%) and July (9.0%), when it interrupted the downward trend started in November 2019.

Among the major economic categories, Capital goods (7.0%) and Durable consumer goods (6.5%) also recorded the most intense advances in this comparison, remaining with the positive behaviour since July 2020 and accumulating, in this period, gains of 55.2% and 163.7%, respectively. Semi durable and non-durable consumer goods (1.6%), with an upward trend started in May 2020, and Intermediate goods (1.0%), which advanced in the fourth consecutive month and accumulated gains of 19.4%, also recorded advances in October 2020.

Industry advanced 0.3% in relation to October 2019

In the comparison with the same month of 2019, the industry sector recorded advances of 0.3% in October 2020, with positive results in two out of the four major economic categories, 16 out of the 26 surveyed segments, 45 out of 79 groups and 50.8% of the 805 surveyed products. Regarding that October 2020 (21 days) had two less business day than the previous year (23)

Among the activities, the major influences on the industry total were Coke, petroleum products and biofuels (7.2%), Machinery and equipment (9.4%), Beverages (9.9%) and Non-metallic mineral products (9.8%). Other major positive impacts were Rubber and plastic products (8.4%), Fabricated metal products (8.2%), Computer equipment, electronic and optical products (9.5%), Basic metals (3.4%), Food products (1.0%), Wood products (13.8%), Textiles (9.8%) and Electrical machinery and materials (6.1%).

On the other hand, still in the comparison with October 2019, among the activities that recorded reduction in production, Motor vehicles, trailers and bodies (-14,6%) and Mining and quarrying industries (-6.0%) were the major negative influences on the industry average, under the pressure, mainly, of Cars and car pieces, in the first, and Iron ore, in the second. Moreover, it is worth highlighting the falls recorded in Other transportation equipment (-33.0%), Printing and reproduction of recorded media (-36.7%), Maintenance, repair and installation of machinery and equipment (-15.9%), Manufacture of wearing apparel and accessories (-8.1%) and Miscellaneous manufacturing (-10.2%).

Among the major economic categories, still in the comparison with the same month of 2019, Intermediate goods (3.2%) recorded the sharpest advance. The sector also grew in September (5.7%), August (1.9%) and July (1.9%), when it interrupted four consecutive months of negative rates in this kind of comparison. Moreover, Capital goods (2.1%) also recorded positive rates, interrupting eight consecutive months of negative rates.

On the other hand, the segments of Durable consumer goods (-8.3%) and Semi and non-durable consumer goods (-3.4%) retreated. The second recorded an advance (1.9%) in September, when it interrupted eight consecutive months of retraction, but started decreasing in October, mainly, due to the fall in fuels (-12.6%), under the pressure of the lowest production of ethyl alcohol and gasoline. Durable consumer goods interrupted seven consecutive months of negative results in September (2.1%), and decreased more under the pressure of falls in car manufacturing (-22.1%) and motorcycles (-14.3%).

Every major category accumulates retreat this year

In the cumulative index for January-October 2020, against the same period in the previous year, the industrial sector recorded a reduction of 6.3%, with negative results in every major economic category, in 20 out of the 26 segments, in 62 out of 79 groups and in 66.3% of 805 surveyed products.

Among the activities, Motor vehicles, trailers and bodies (-34.4%) was the major negative influence on the industry total, affected, mainly, by the manufacture of cars, tractor trucks for trailers and semi-trailers, trucks and car pieces. Other negative contributions that worth it highlight were Manufacture of wearing apparel and accessories (-29.1%), Basic metals (-11.2%), Machinery and equipment (-9.4%), Leather, travel articles and footwear (-24.8%), Other transportation equipment (-31.4%), Mining and quarrying industries (-2.8%), Printing and reproduction of recorded media (-37.7%),  Maintenance, repair and installation of machinery and equipment (-17.1%), Miscellaneous manufacturing (-19.1%), Rubber and plastic product (-5.4%), Non-metallic mineral products (-5.3%) and Textiles (-11.4%). On the other hand, among the six activities which recorded growth in production, the major influences were food products (5.2%) and coke, petroleum products and biofuels (4.8%).

Among the major economic categories, the main falls were in Durable consumer goods (-24.6%), under the pressure of the reduction in car manufacturing (-40.4%), and in Capital goods (-15.6%), affected by the fall in capital goods for transportation equipment (-29.2%) and industrial purposes (-10.1%). The segments of semi and non-durable consumer goods (-7.1%) and intermediate goods (-2.4%) also accumulated negative rates this year, with the first one recording decreases sharpest than the national average (-6.3%); and the second one recording the less intense decrease among the major economic categories.