Rio de Janeiro – As a result of the slowing down of the Brazilian economy, the industrial sector shows signs of deceleration, reflected in the 2% decline in industrial production from August to September, as pointed out by the Brazilian Institute of Geography and Statistics (IBGE).
The Monthly Industrial Survey issued this Tuesday (1st) shows a decline of 11% in automobile production as the main contributing cause to the industry slowdown. It is the sharpest decline since December 2008 (38.8%), when world financial crisis first hit the country’s domestic market.
According to the IBGE manager in charge of the survey, André Macedo, due to high stock levels, automakers have shutdown, which impacted truck production as well.
Macedo added that rising stock levels were also detected in other fields, which contributed to the sharp decline in industrial production during the month. These levels reflect lower domestic demand and replacement of national products by foreign ones.
The IBGE survey indicates that industrial output has been slowing down since October 2010. After a 1.3% increase in the first quarter of the year, production dropped by 0.6% in the second quarter of 2011 and by 0.8% from July to September.
*Translated by Gabriel Pomerancblum
