Domestic market makes industry break records
Valor Econômico - 12/06/2007
The heated domestic consumption led to a strong increase in the production of the Brazilian industry in October. With the income and employment on the rise and favorable credit conditions, the sector reacted better than expected and the production grew 10.3% compared to October/2006, at the highest rate since August, 2004, when it grew 13.3%, according to the Monthly Industrial Research by the Brazilian Institute of Geography and Statistics (IBGE). In the comparison with September of this year, the production increased by 2.8% in unseasoned terms, the highest raise since September, 2003, when there was an increase of 4.6%. "In 2007, the dynamics of the industrial performance is greatly related to the internal demand, even though the exportations also present good results", said the IBGE Industry coordinator, Silvio Sales. The coordinator of the institute highlights the generalization of the sector expansion - 23 of the 27 researched areas have presented rises compared to October/2006 - and the vigor of the results. Not only the industry reached the highest level of production, capital, intermediate and durable goods also beat the highest productive level of the historical series in October. Sales says the good distribution of the expansion also impacts the index of diffusion of the growth among the industrial products covered by the research. In October, the index was at 62.5% and, year to date, the average was equivalent to 64%, rates well above the 54.6% from 2006. All the industrial products registered expansion in October. The greatest advance took place with the capital goods, whose rise reached 26.8% compared to October of 2006, signaling the continuity of the investments in machinery and equipment. All segments of capital goods had production increase, standing out those capital goods aimed at agriculture (60.6%), energy (52.6%) and transports (30.1%). Capital goods with industrial purposes registered a raise of 13.2%. In the year, the industrial sector as a whole accumulated an increase of 5.9% and in the 12 months ending in October, the expansion reached 5.3%.