Industry starts earning as before the crisis
O Estado de S. Paulo
The real earnings of the processing industry increased 3.3% in February, exceeding the level of September 2008, prior to the beginning of the effects of the global financial crisis in Brazil. The recovery occurred without pressuring the use of the installed capacity of the companies, according to the industrial indicators disclosed yesterday by the National Confederation of the Industry (CNI). The level of use of the industrial park in February stayed at 80.4%, same level of January, which indicates, according to the CNI, that the industries have capacity to meet the demand without causing inflation.
The last minutes of the meeting of the Monetary Policy Committee (Copom) of the Central Bank have signaled it will be necessary to increase the basic rate of interest from this month on in order to restrain the difference between the pace of expansion of the domestic demand and the productive capacity of the economy. For the entity of the industry, however, the data of the industry does not support the analysis of the Copom. "The existence of some idleness in the industrial sector, even with the strong growth of the demand, shows there is room for the offer to respond positively with the increase of the production", said the Head Economist of the CNI, Flavio Castelo Branco.
According to him, the increase of inflation may occur because of seasonal factors, such as heavy rains in some States, which should increase the prices of the fruits and vegetables, and because of the adjustment of some service agreements. "Such inflationary pressures are very little caused by the industrial sector", he said. Castelo Branco admitted, however, that there may be an increase in the prices of durable goods such as home appliances and cars, because of the end of the reduction of the IPI (Excise Tax). Besides the earnings, the hours worked in the production and employment grew in February, consolidating the process of recovery started at the end of last year. According to the Economist of the CNI, the increase of the production with the stability in the use of the manufacturing park means the expansion projects entered into operation.