Industrial activity speeds up
O Estado de S. Paulo
The indicator preceding the industrial production, the HSBC Bank Purchasing Manager's Index (PMI) shows the Brazilian industrial activity took another step towards recovery in August. The index went from 48 in July to 50.6 last month, and remained above the mark of 50 points, which signals expansion, for the first time after September/2008.
"Even though it was a still timid growth, it is an encouraging figure, since the manufacturing industry was the segment that suffered the most with the collapse of the foreign demand and the retraction of credit in the fourth quarter of last year", said the chief economist of the HSBC, Andre Loes. "August's figure is good news, and it strengthens the view of a recovery consistent with the industrial activity."
The PMI is based on data compiled by the English financial information services company Markit Group, supported by monthly answers to questionnaires sent to executives in charge of purchases in more than 450 industrial companies. It is a consolidation of data based on five individual indicators: new orders, production, employment, supplier deliveries and input inventory levels.
"The domestic market keeps leading the recovery, at the same time in which the employment remained practically at the same level as in the previous month, after a period of systematic contraction", said the HSBC economist. "The more vigorous increase of the production (the index went from 49.8 to 52.2) and the level of orders in delay slightly above neuter suggests that the utilization of the capacity starts being increased." An index above 50 indicates a global increase in such variable. Below 50, it would indicate a global decrease.