São Paulo – Brazilian exports of machinery and equipment increased 25% in August over the same month of last year and 15% over July, according to data made public this Wednesday (28) by the Brazilian Machinery Builders’ Association (Abimaq). Although smaller, in the first eight months of the year there was also an increase of 2.4% over the same period of 2015.
In August, the external market generated revenues of USD 696 million to the capital goods Brazilian industry. From January to August, revenues reached USD 5.3 billion. Even so, the sector’s still carrying a high trade balance deficit. Last month, the deficit was of USD 502 million, since imports totaled USD 1.2 billion. This occurred even with a decline in imports of 24.6%. Year-to-date, the deficit reached USD 5.8 billion, a decline of 30.6%.
In August, almost all the sectors of the machinery industry upped their exports. The highlights were oil and renewable energy machinery, with sales climbing 140% over July, infrastructure and primary industry, up 48%, and logistics and construction industry, up 25.5%.
The main export destinations for Brazil’s capital goods industry were Latin America, Europe and the United States, in this order. But Abimaq states that there was a decline in the share of Latin Americans and a strong rise in Chinese imports. Latin America reduced its purchases in 3.5% from January to August over the same months of 2015, with Europe reducing theirs in 2.6%. Meanwhile, the Chinese increased imports in 481% in the period.
Despíte the good performance in foreign trade, the sector’s net revenues declined 17.4% in August over the same month of 2015 and 27.3% in the first eight months of the year. In 2016 until August, revenues by the capital goods and machinery industry reached BRL 45 billion (USD 13.97 billion). Last month, revenues totaled BRL 5.7 billion (USD 1.76 billion). The sector currently has 306,000 employees.
*Translated by Sérgio Kakitani
