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November 7, 2022
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Small industries are less affected by raw material shortages

Industrial production rises 0.6% from June to July

The scarcity and price increase of raw materials are less affecting micro and small industries. This is what the quarterly survey Panorama of Small Industry reveals, released today (7) by the National Confederation of Industry (CNI).Small industries are less affected by raw material shortages

According to the survey, from July to September, the lack or the high cost of raw materials continued to be the main concern in the manufacturing industry, although to a lesser extent than in the previous quarter. In the construction industry, high interest rates have become the main obstacle. In the extractive industry, the tax burden was once again the biggest problem.

For the Policy and Industry analyst at CNI, Paula Verlangeiro, the increase in prices and the difficulty of accessing raw materials did not fail to affect the industry, but the problem was less marked in the third quarter and should decline even further at the end of the year.

Financial situation

The survey pointed to an improvement in the financial situation of micro and small industries. The Financial Situation Index reached 43.7 points in the third quarter, presenting the best result since 2013. According to CNI, the advance can be explained by the increase in the indicators of satisfaction with operating profit and ease of access to credit, which continued to grow, even with high interest rates.

The sector’s average Performance Index stood at 49 points, above the historical average for the quarter (45.3 points) and 1.6 points higher than the third quarter of last year.

Confidence

The Industrial Entrepreneur Confidence Index (Icei) for small industries reached 58.7 points in October. The indicator fell in relation to September (61.9 points), but remains above the historical average of 53 points and indicates maintenance of confidence. According to the survey, indices above 50 points show optimism.

The survey is released quarterly based on a cut-off for smaller companies from the Industrial Survey, the Construction Industry Survey and the Industrial Entrepreneur Confidence Index (Icei). Every month, polls hear from nearly 900 small business entrepreneurs.

Among the items considered in the composition of the indices are production volume, number of employees, use of installed capacity, satisfaction with operating profit and financial situation, ease of access to credit, expectation of demand evolution and investment and hiring intentions. .

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