Industrial production fell in April 2022 compared to March, reported today (16) the National Confederation of Industry (CNI). According to a bulletin released by the entity, the index that measures the evolution of production stood at 46.5 points, staying below 50 points, the dividing line between fall and growth in production compared to the previous month, when it closed at 54.5 points.
The information is part of the Industrial Survey bulletin, which also provides information on the evolution of production, the number of jobs, inventories, among other indicators. In order to carry out the research, 1,839 companies were interviewed, being 740 small, 641 medium and 458 large, from May 2 to 10.
The indices evaluated by the CNI range from 0 to 10. Values above 50 indicate an increase in production employment, a higher-than-expected stock or use of installed capacity higher than usual. Values below 50 indicate that the activity level is below usual.
The CNI said that the behavior for the month was already expected and that the result is within the historical pattern for the months of April, disregarding April 2020, when production was deeply affected by the pandemic of the new coronavirus (covid-19).
The bulletin shows that industrial employment also suffered a decline in April compared to March. The number of employees evolution index was 49.5 points, just below the dividing line. In March 2022, the index was right on the dividing line, at 50 points.
The Use of Installed Capacity (UCI) of industries closed at 69% in April, compared to March. According to the entity, the percentage is one point higher than the historical average recorded for the month, measured since 2011.
According to the CNI, despite the UCI being a point higher, the increase did not translate into a rise in industrial production, due to the low productivity of the industry.
One of the factors is the disorganization of global value chains, due to the new coronavirus (covid-19) pandemic, which was accentuated by the war between Russia and Ukraine. This fact has caused uncertainties in relation to the acquisition of raw materials, with delays in deliveries and rising costs.
“By remaining close to 50 points, the index shows that inventories remain relatively adjusted. However, the result reveals frustration on the part of entrepreneurs,
because the level of inventories departed from what was planned”, said the CNI.
The actual installed capacity utilization index compared to the usual one registered 43.3 points in April, a decrease of 2.4 points in relation to the previous month. this result
indicates that the index remains lower than usual for the month.
