Automotive sector is crucial for the industry's good performance

Industry activities aimed at the production of motor vehicles, trailers and bodies played a fundamental role in the results obtained in the industry’s overall performance, growing 12% in July this year compared to July last year. Automotive sector is crucial for the industry's good performance

“Automobiles were decisive for this result. Auto parts, to a lesser extent, but they also helped the sector,” said the manager of the Monthly Industrial Survey (PIM) released today by the Brazilian Institute of Geography and Statistics (IBGE), André Macedo.

According to Macedo, the negative performance of industrial production in July, which fell by 1.4%occurs after intense growth seen in June, when production grew 4.3%, influenced by the return to production of production units that were, directly or indirectly, affected by the rains that occurred in Rio Grande do Sul in May. Automotive industries such as Scania and Volks, affected by the lack of components coming from factories in Rio Grande do Sul, even granted collective vacations.

“A large part of the decline recorded this month has been the result of the advance seen in the previous month, but it is also observed that important industrial plants have carried out shutdowns, even so we are on an upward trajectory,” he stated.

GDP

Yesterday, the IBGE announced that the Gross Domestic Product (GDP) grew by 1.4% in the second quarter, exceeding expectations. Industry and the services sector were key to the positive result.

Vice President Geraldo Alckmin, who is also Minister of Development, Industry, Commerce and Services (MDIC), celebrated the overall performance.

“There are three pieces of good news. The first is the GDP growth. The market expected 0.9% and it grew 1.4%. The second piece of good news is that we had the third highest growth among all G20 countries and, finally, the quality of this growth. Industry grew, investments grew and this is good news for Brazil and for Brazilians,” said Alckmin.

Check out the GDP results of the G-20 countries in the second quarter of 2024:

Indonesia: 3.8%;

India: 1.9%;

Brazil: 1.4%;

Saudi Arabia: 1.4%;

Japan: 0.8%;

United States: 0.7%:

China: 0.7%;

United Kingdom: 0.6%;

Canada: 0.5%;

South Africa: 0.4%;

European Union: 0.3%;