Recent statistics show that Brazilian industry generally increased itsproduction in November, reversing to some extent the slight decline ofthe previous three months.
The figures were released on 5th January by IGBE (the BrazilianInstitute of Geography and Statistics). While the overall total of‘factory output’ is up a little ( zero point three percent), thatmasks some interesting variations in the individual categories thatmake it up. In general terms, two-thirds of them are up whileone-third are down, bringing about the slight combined increase.
Growth was marked most notably in equipment and machinery products,with a comparatively healthy four per cent. However, this must be seenas only partly reversing the cumulative 9% loss over the previous twomonths. Still, it was an increase. Others emerged in sectors ofproductive industry such as printing and publishing (nearly 3.5percent), metal products (4 %) and motor vehicles (one and a half).However, the leader in increases this month was indisputably clothingat 9.4%.
Of the nine main categories which declined in the monthly total, themain items worth mentioning are Oil refining and alcohol products(both over 5%, reversing previous increases), computers and relateditems (8%) and other electronic equipment (seven and a half).
Clearly, the results, sector by sector are variable and therefore thebest overall indicator is the slight total increase. This has obviousimplications for Brazil’s balance of payments, exports and imports andultimately interest rates, all of which affect the country’s vitalinward flow of international investment.
This in turn affects the ability of Government (national, state orlocal) to deal with relief for natural disasters such as the recentfloods. It of course also includes longer-term projects including theaffordable housing programme, Minha Casa Minha Vida.
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