Consumption of machinery grows 29% in the 3rd quarter
Valor Econômico - 11/19/2007
Investment performance in the third quarter was one of the most promising ones. The production and importation of capital goods and the civil construction sector had expressive growth, confirming the sound process of expansion of the productive capacity of the Brazilian economy. The greatest highlight is undoubtedly the consumption of machines and equipment. Calculated by the sum of the production and the importation of capital goods and by the exclusion of the exportation, from July to September this index grew 29.3% compared to the same period of 2006, according to calculations made by Bradesco's Department of Economic Studies and Researches. It is a strong acceleration in comparison with the already respectable 19.5% reached in the second quarter and the 12% of the first one. In the year's aggregate, it is a growth of 20.5%. According to analysts, the fall of the interest rates, abundant credit, valued exchange rate, and the perspective that the demand may remain strong, explain this year's strong increase of the Gross Fixed Capital Formation (GFCF, which measures the investment in civil construction and machinery and equipment). The greatest contribution for the apparent consumption of capital goods comes from the imports of machinery. Stimulated by the valued exchange rate and the strong internal demand, they increased 32.9% in the 12 months ending in September - this rhythm represents the double of the increase of the domestic production of this sector, which was 15.4% in the period. The importation avalanche, however, did not destroy the national production of capital goods. From January to September, the production of those products grew 18% compared to the same period of 2006.