Industrial production drops 2.4% in January

Industry grows 0.1% in April, says IBGE

Industry grew by 0.1% in April, according to the Monthly Industrial Survey (PIM Regional) of the Brazilian Institute of Geography and Statistics (IBGE). Eight of the 15 investigated sites followed the positive result. The biggest increases were registered in Rio de Janeiro (5.9%), Santa Catarina (3.3%) and Bahia (3%).Industry grows 0.1% in April, says IBGE

Despite lower percentages, production in Pernambuco (2%), Pará (1.9%), Northeast Region (1.5%) and Rio Grande do Sul (0.5%) also rose above average. national. The state of Amazonas (0.1%) was at the same level. In the opposite direction, Mato Grosso (-4.7%), Paraná (-4.3%) and São Paulo (-2.8%) had more accentuated declines.

According to the survey, in the period between February and April, the quarterly moving average was positive in 11 of the 15 surveyed locations. The highlights were Pará (6.3%), Minas Gerais (3.3%), Pernambuco (3.2%), Amazonas (3.2%), Ceará (2.7%), Rio de Janeiro (2, 7%) and Northeast Region (2.5%). In the accumulated result for the year, however, there was a decrease in 11 of the 15 areas surveyed, mainly in Pará (-10.2%), Ceará (-9%) and Santa Catarina (-8.1%).

In 12 months, the national industry fell by 0.3% and seven of the 15 places surveyed had negative rates in April 2022. “Amazonas (from 6.5% to 1.5%), Paraná (from 5.8% to 2 .1%), Santa Catarina (from 3.5% to 0.1%), Rio Grande do Sul (from 5.2% to 2%), Ceará (from -0.9% to -3.7%) , Espírito Santo (from 6.4% to 3.8%), São Paulo (from 1.6% to -0.7%) and Minas Gerais (from 7% to 4.8%) showed the main losses between March and April 2022, while Bahia (from -8.8% to -6.9%) and Mato Grosso (from 7.1% to 8.4%) had the biggest gains between the two periods”, pointed out the survey.

The data were released today (9) by the IBGE. For the research analyst, Bernardo Almeida, factors such as high inflation, low income, which reduces family consumption, the increase in raw materials and the shortage of supplies explain the timid growth in April. “All this falls directly on the production chain, slowing down industrial production,” he noted.

The result of Rio de Janeiro, which was the second consecutive positive rate for the industry of Rio de Janeiro, represented the main influence on the result. The advance was caused by the performance of the coke sector and petroleum products and biofuels, also impacting the metallurgy sector. “It was the most intense rate for Rio since July 2020, when the Rio de Janeiro industry reached 8% growth,” said the analyst.

According to the survey, the 3.3% increase in Santa Catarina, which ranked second in April’s highlights, was largely influenced by the clothing industry. With the result, the state eliminated part of its fall from the previous month, which reached 3.5%.

According to the analyst, the main negative influence on the national index was the 2.8% drop in São Paulo. The state accounts for approximately 34% of national industrial production. “The low performance of the automotive vehicle sector and that of machinery and equipment had the greatest weight in this result”, explained Bernardo Almeida.

The survey also showed that in April, five of the 15 places surveyed reached rates above the pre-pandemic level of covid-19, recorded in February 2020. Minas Gerais and Rio de Janeiro were at 5.8%; Mato Grosso, 5%; Rio Grande do Sul, 3% and Santa Catarina 2.9%.

Compared to April 2021, industrial production fell by 0.5% with negative rates in seven of the 15 surveyed locations. The IBGE highlighted that April 2022 had 19 working days, that is, one day less than the same month of the previous year.

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Since the 1970s, PIM Regional has produced short-term indicators relating to the behavior of the real product of extractive and manufacturing industries. In addition to the monthly indexes of 14 federation units whose participation is at least 1% in the total value of national industrial transformation, the survey includes the Northeast. The researched locations are Amazonas, Pará, Ceará, Pernambuco, Bahia, Minas Gerais, Espírito Santo, Rio de Janeiro, São Paulo, Paraná, Santa Catarina, Rio Grande do Sul, Mato Grosso, Goiás and the Northeast Region.

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