Brasília – Weak output and employment levels in Brazilian industry continue to keep it from rebounding, the National Confederation of Industry (CNI) said. Its Industrial Survey, issued this Tuesday (23), shows production slowing in September by more than it did a year ago. Installed capacity utilization remains below levels seen in good years.
Idle capacity remains high, and inventory levels are higher than planned. High raw material costs and the exchange rate are mounting issues faced by industrialists. On the other hand, corporate finances have improved marginally.
The CNI’s production index scored 47.2 points in September, with employment at 49.2. Industrial Survey indicators range from 0 to 100, with scores lower than 50 showing weakening production and employment.
Industry production slid by a higher rate last month than it did in September 2017, at which point the indicator had scored 48.1. Installed capacity utilization slid by 1 percentage point in September from August to 68%, showing that idleness remains high.
Translated by Gabriel Pomerancblum
