Brazilian industrial production remained stable in June this year, after showing growth in May, the National Confederation of Industry (CNI) reported today (15th) in Brasília. The production evolution index registered 50.1 points, very close to the 50-point dividing line, which means that production was stable compared to the previous month. In May, the index had stood at 53.6 points.
The information is part of the Industrial Survey bulletin, which also provides information on the evolution of production, the number of jobs and inventories, among other indicators. The CNI said that the behavior of June shows a maintenance in the rhythm of production, “although there is usually a drop in the period”.
According to the survey, industrial employment grew in June compared to May. The index for the evolution of the number of employees was 50.8 points, above the 50-point dividing line that separates a fall from a rise in employment.
“The June 2022 index is very close to that of May (0.2 points lower), which means that the pace of employment growth was similar to that of the previous month,” explained the bulletin.
The indices evaluated by the CNI range from 0 to 10. Values above 50 indicate an increase in employment, production, inventory above planned or use of installed capacity above usual. Values below 50 indicate that the activity level is below usual.
For the June survey, 1,853 companies were interviewed, being 730 small, 660 medium-sized and 463 large between July 1st and 11th, 2022.
concerns
According to the bulletin, the main problem raised by Brazilian industries is the lack or high cost of raw materials, with 52.8% of companies highlighting the problem in the second quarter of 2022. This is the eighth consecutive quarter that companies consider the lack or increase of inputs as the main issue of the sector.
In second place in the ranking of the main obstacles in the segment appears the high tax burden. It concerns 30.9% of industrial entrepreneurs. This result was practically the same as in the previous quarter, showing a slight increase of 0.5 percentage point (pp).
“High interest rates showed, for the fifth consecutive time, an increase in referrals, moving to the third position in the ranking, with 24.3% of referrals. The problem had a 3.5 pp increase in notifications this quarter. In comparison with the first quarter of 2021, the percentage increased by 16.7 points”, argued the CNI.
Insufficient domestic demand appears in fourth place, with 23.0% of the indications of industrial entrepreneurs, which represents a reduction of 2.5 pp, in comparison with the previous quarter. The exchange rate was in fifth place in the ranking, up one position in relation to the previous quarter. The problem was mentioned by 19.6% of entrepreneurs, an increase of 1.7 pp compared to the previous quarter.
