85% of the industry operates above the average of two last years
Valor Econômico 10/30/2007
In August, half of the 24 industrial sectors surveyed by the Brazilian Institute of Geography and Statistics (IBGE) registered production records and achieved the highest monthly level of the last five years, when the current industrial data series of the institute began. In addition to those historical records, another survey, the industrial survey carried out by the FGV -Fundação Getúlio Vargas (Getúlio Vargas Foundation), has shown high levels of installed capacity use. In July (last quarterly datum available), 12 out of 14 sectors - more than 85% of the total - were at the lower level of idleness of the last eight quarters (two years). Different economists who follow the level of activity acknowledge that the installed capacity in the industry (Nuci) and the average rhythm of production of most sectors is, in fact, at high levels. Nonetheless, the current situation still does not suggest that the Brazilian economy will face, in the short term, disturbing inflationary pressures. The evolution of the inflation of industrial prices - 3% in the last 12 months - helps form this picture of tranquility. But the main reason is due to the maturity of the investments made during the last two years and the perspective that they will continue to mature in the next months must be enough so that the productive capacity of the companies increases and pevent demand pressures. In the processing industry, the installed capacity reached 85% in July, according to the free-of-seasonal-influences FGV series. It means 1.5 above the average of 83.5% of the last eight months - which continued at the same level of April. FGV publishes the October data today.