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Brazil’s industrial output grew for the fourth consecutive month with a 3.2 percent increase in August from July. Nonetheless, the indicator is still to totally eliminate the 27 percent loss accumulated between March and April early in the COVID-19 pandemic, when the industrial production fell to the lowest level in this time series. Year-to-date, production shrank 8.6 percent.
The figures come from the Monthly Industrial Survey (PIM in the original), released today (Oct. 2) by the government statistics agency IBGE, which also shows that, compared to August 2019, industrial output was lowered by 2.7 percent. This is the tenth negative figure in a row in this comparison. In the 12-month period, reduction was reported at 5.7 percent.
The August performance, said Research Manager André Macedo, shows Brazil’s industry is recovery after measures to tackle the pandemic were tightened. “A positive behavior in the industrial sector has somewhat been maintained in the last few months. It’s a consistent progress, and well distributed across categories, but there is still a portion to be recovered,” he said in a note.
The specialist explained that the impact of the need fo social isolation was significant, and affected production of factories across the country, which were either closed or had their activities suspended. The industrial sector is reported as being 2.6 percent below February, before the pandemic started.
The study found that all major categories showed an expansion in August from July. Durable consumption goods witnessed the sharpest surge (18.5%). Capital goods (2.4%), intermediary goods (2.3%), and semi- and non-durable consumption goods (0.6%) also rose in August, but below the average for industry.
Of the 26 fields surveyed, 16 saw an increase, chief among which automobiles and towing vehicles—up 19.2 percent. “Auto production has an impact not just within its category of durable consumption goods, but also in the industrial sector as a whole, as it plays a role in the manufacture of car parts, cars, and trucks in general,” Macedo pointed out.
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