Industry resumes investment plan
Folha de S. Paulo
After stepping on the brake because of the crisis, the industry now shows its willingness to resume investments. A survey of the BNDES (Brazilian Development Bank) made at the request of Folha shows the enquiries for the financing of the Bank, a thermometer of the intention to make investments, have skyrocketed in the recent months. 18,171 enquiries were received between July and September, an increase of 58% compared to the previous quarter. Among the sectors that have sought the BNDES are the segments of textiles, foods and beverages and mechanical industry, which comprises capital goods and car parts, among others.
"After paralyzing their investments and liquidating their stocks, the companies were surprised since the middle of the year with the growth in the domestic demand. The use of the installed capacity increased rapidly, and the investments are now resumed", said Fernando Pimentel Puga, head of the Department of Economic Monitoring and Operations of the BNDES.
According to him, the industry is aiming its investments primarily on the purchase of machinery and on the construction of new plants.
The use of the installed capacity in the processing industry has reached 82.9% in October, the highest level of the year. When this index is between 82% and 83%, the industry feels pushed to increase their investments, according to the FGV (Getúlio Vargas Foundation). Durable consumer goods - that include products such as stoves, refrigerators and cars -, for instance, have reached 90.1% of the use of the capacity. Construction material, 89.1%. As for the Industry Confidence Index, which measures the level of optimism of business community, it reached 112.2 points in October, the boggest level since September last year. "The increase in the use of the capacity and the confidence are the main drivers of the investment cycle. And both are on the rise", said the FGV economist, Aloísio Campelo. For the Executive Manager of Economic Policy of the CNI (National Industry Confederation), Flavio Castelo Branco, despite the resumption, the level of investment is far from normal. The pre-crisis level should be reached during the next year, according to Puga.