São Paulo Industry closes 2007 with 6.1% expansion
Valor Econômico - 01/31/2008
The robustness of the domestic demand in 2007 surpassed the expectations of the São Paulo industry and produced much stronger results than those that were expected for the activity of the sector in São Paulo. The Activity Level Indicator (INA) of the São Paulo processing industry grew 6.1%, compared to the 5% estimate made by the Federation of the Industries of the State of São Paulo (Fiesp) in October. In 2006 the expansion was 3%. The exuberant consumption in the domestic market sustained the industry, in spite of the difficulties reported by many productive sectors, mainly regarding the overvalued Real and the high interest rates in the country. In the beginning of the year, Fiesp's forecast was for a 3.5% high for the indicator. In the analysis for the month of December, the index showed a retreat of 1.3% compared to the month of November, after the seasonal adjustment. Without such adjustment, the activity of the São Paulo processing industry was 11.9%, below that seen in the previous month. In the comparison with December of 2006, the INA advanced 7%. In November, the INA indicated a low of 1.2% in the comparison with October, with the seasonal adjustment. Without such adjustment, the fall was 4.3%. According to the Associate Director of Fiesp's Department of Research and Economic Studies (Depecon) Walter Sacca, the real increase of salaries, employment, and the abundant credit formed an effective conjuncture to stimulate the local economy.