Brazilian industrial production grew 0.9% in January, compared to December, according to the Monthly Industrial Survey, released today (10) by IBGE. The result interrupted two months of negative rates and is the best January since 2017, when it was 1.1%. Compared to January last year, the sector had a drop of 0.9%, with a decline also in the accumulated result over the last 12 months, of -1%.
In comparison with December, 17 of the 26 industrial sectors surveyed and three of the four major economic categories showed positive rates in January. “This hasn’t happened since April of last year. The positive results were concentrated in a few areas of the industry for eight consecutive months in 2019”, highlights the research manager, André Macedo.
The main positive influences came from machinery and equipment (11.5%), motor vehicles, trailers and bodies (4.0%), metallurgy (6.1%) and food products (1.6%), after the declines recorded in December. Coke, petroleum products and biofuels (2.3%) advanced for the third month in a row.
Among the eight sectors that reduced production in January, the most important performances for the global average were recorded by printing and reproduction of recordings (-54.7%) and extractive industries (-3.1%), which had the fifth consecutive month of a drop in production and has accumulated a loss of 8.9% since then.
Among the major economic categories, André Macedo observes that capital goods (12.6%) and durable consumer goods (3.7%) grew above average in January with the resumption of production in the vehicle industries after the collective vacation period .
“As a result, capital goods interrupted the negative results since May 2019, a period in which it accumulated a reduction of 14.8%. January's result was the most intense advance since June 2018 (23%). The increase in durable consumer goods returned part of the loss of 6.8% accumulated in the last two months of 2019”, added the research manager.
Also according to the research, intermediate goods (0.8%) also registered a positive rate in January. On the other hand, the sector producing semi- and non-durable consumer goods had a negative change of 0.1% and marked the third consecutive month of decline in production, accumulating a decline of 2.2% in this period.
Source: DATA
