Brasília – Actual revenues of the Brazilian industry has grown for the fifth consecutive month. The non-seasonal indicator for October was 1.4% higher than in September, according to the Industrial Indicators survey issued this Monday (5th) by the National Confederation of Industries (CNI). “Actual revenues remain in a growth trajectory, unlike the remaining industrial activity variables,” the document informs.
Other indicators did not fare as well as the revenue indicator did. Use of installed capacity dropped by 0.3% compared with September. The indicator went from 81.7% to 81.4%, the lowest rate since February 2010. The number of hours worked dropped by 0.3%, in the second consecutive month of decline.
The CNI indicators show that the industrial labour market went back to performing favourably. The seasonal variation-free variable increased by 0.2% in October compared with the preceding month. Still, “the trend did not surmount the 0.3% decline seen in September, using the same basis of comparison,” the survey pointed out.
The job supply performance was not accompanied by an equivalent increase in total wages paid, which have declined in terms of actual earnings. The indicator decreased by 1.1% (no seasonal variation) in October compared with September. “In spite of an increase in labour supply, the indicator declined due to a sharp decline in actual earnings,” the CNI informed.
According to the CNI executive manager, Renato da Fonseca, positive actual earnings figures diverge from other indicators as a result of high stock-up levels. “The industry is slowing down, industrial production is facing problems. Sales are still rising, but production is not keeping up, clearly due to stock-up levels, which have been above the desired level since the year began,” he said.
*Translated by Gabriel Pomerancblum
