The month of August registered an advance in industrial activity, with growth in production and employment for the fourth consecutive month and the third monthly increase in the use of installed capacity. The results of Industrial Surveysurvey by the National Confederation of Industry (CNI), also indicate acceleration in the pace of growth in the sector in relation to July.
“In this scenario, expectations remain optimistic in September 2022, with an increase in demand, in the amount exported, in the number of employees and in the purchase of raw materials for the coming months. The intention to invest advanced for the second consecutive month, reaching the highest value for a month of September since the beginning of the series”, said the entity, in a note.
The production evolution index registered 54.5 points in August, a result above the 50-point dividing line, which means that production increased compared to the month of July. According to the CNI, the index shows an increase in production for the fourth consecutive month, with an acceleration in the pace of growth in August.
“It is noteworthy that the average value for the months of August is 52.7 points, that is, industrial production usually increases from July to August 2022. As the August 2022 index is slightly above average for the month, the result indicates an increase in production rhythm above the average for the month”, explains the CNI.
Industrial employment increased in August compared to July. The index for the evolution of the number of employees was 52.2 points, above the 50-point dividing line that separates a fall from a rise in employment. According to the entity, the average value for the months of August is 49 points, lower than the value of 50 points, that is, there is usually a drop in employment between July and August.
Installed capacity and inventories
Installed Capacity Utilization (UCI) increased by 2 percentage points between July and August 2022, to 73%. According to the CNI, in addition to being the highest value observed in 2022, it is the highest value for a month of August since 2013, when the UCI reached 74%.
The actual installed capacity utilization index compared to the usual one registered 47.7 points in August, a result that represents an increase of 1.7 points in relation to the previous month.
The level of inventories of final products in the industry also increased from July to August. The stock level evolution index was 51.6 points, that is, above the 50 point dividing line, which indicates stock level stability.
Considering by size, the level of inventories increased among small, medium and large companies, with indexes of 50.8, 50.8 and 52.4 points, respectively. For small companies, this is the first month of August to indicate expansion of inventories since the beginning of the series.
The effective inventory index in relation to the planned one reached 51.4 points. “As a result, the month of August registered the greatest excess of inventories in relation to the planned for the year”, highlighted the entity.
Expectations and investments
According to the Industrial Survey, all indexes of expectations for the month of September are above 50 points, that is, they reveal optimism on the part of the sector’s entrepreneur.
The demand expectation index stood at 59.3 points, showing a slight drop of 0.4 point compared to the previous month. The expectation index for the number of employees stood at 53.9 points, an increase of 0.2 points from August to September, the highest value since September 2021.
The index of expectation of purchases of raw materials registered 56.9 points, a decrease of 0.4 point compared to August. The index of expectation of exported quantity was 52.8 points, maintaining relative stability in relation to the August result, when the index registered 52.9 points.
The investment intention index reached 59 points, the highest value between the months of September since the beginning of the CNI series. The result represents an increase of 2.1 points compared to the previous month.
Between the 1st and the 12th of September, 1,781 companies were interviewed, of which 696 were small, 637 were medium-sized and 448 were large.
