São Paulo – Brazilian industrial production in the month of August presented signs of recovery. Although the forecast of the Institute of Applied Economic Research (Ipea) for the period is 7.8% reduction when compared to the same month last year, some sectors of the economy are already recording improvements when compared to July this year.
The main highlight was the production of vehicles, which in August totalled 294,400 units produced, against 282,000 units in July, growth of 5.4% in the series with seasonal adjustment, according to a study elaborated by the Board of Macroeconomic Studies at the Ipea.
Sector exports also showed recovery, with foreign sales totalling 45,358 units in August. According to the study, this improvement partly reflects the slight recovery of some carmakers in the United States. Another sector that showed improvement was the paper and cardboard sector, which grew in the unseasoned comparison and advanced 1.6% over July.
The flow of heavy vehicles on highways also presented growth when compared to July, with expansion of 0.4% in the series with seasonal adjustment, and a 3.9% drop in comparison with August last year.
In comparison with industrial production in July as against June, there was also improvement, with growth of 2.2%, in the series free of seasonal influences. According to the study, this result represented great acceleration, as production grew, on average, 1.5% in the first five months of the year. Compared with December 2008, the industry already accumulates expansion of 12%, equal to the level for February 2007. In comparison with the same period last year, the 9.9% reduction was the lowest since March.
According to the Ipea, the positive result was reflected in all sectors, with special highlight to the production of durable consumer goods, which rose 4.6% as against June. The study also points out intermediary goods, which posted positive evaluation for the seventh month running. The 2% expansion presented acceleration as against the average growth in the first half, which was 1.3%.
*Translated by Mark Ament
