08/22/2008 13h35
Big Industries of SP expect better demand
Valor Econômico 08/22/2008
The big-sized industries of São Paulo expect some improvement in the demand in this half year, according to the industrial survey made by the Federation of Industries of the State of São Paulo (Fiesp). The research, carried out with the member companies, pointed to a level of 61.8 points for the expectation of the big-sized industries concerning the demand in the second half of the year, above the 60.5 points indicated in the first quarter. The index varies from zero to 100 points and values above 50 show growth expectation. For the whole of the industries, the demand expectation index for this half remained at 59.1 points, little below what was expected for the previous period, 61.5 points. "The industries expect a minor deceleration in the second half, but with growth", affirms André Rebelo, manager of Fiesp's department of economics. In the first half, the index that shows the level of activity (INA) of the industry of São Paulo pointed to an 8.8% increase, making Fiesp raise its projection for the year in one percent, to 6.5%. For the country, the entity projects a smaller growth, 4.5% for this year and, for 2009, smaller expansion, 3.6%. According to Rebelo, this year the results of the industry will be influenced, mainly by the strong performance of the civil construction and the car sector and, next year, mainly by civil construction. The survey shows the optimism of entrepreneurs regarding the hiring of employees, although at a level below that verified in the expectations for the first half. There is also the expectation of increase in purchase of raw materials. The exportation item was the only one in which entrepreneurs showed pessimism. Rebelo mentions the restriction to credit, competition with imported products, increase in costs and increase in the level of the stocks as factors for the worsening of expectations. According to Rebelo, 25% of the big-sized companies informed an increase in their stocks above that expected in the first half.
