Investment drives industrial production
Folha de S. Paulo - 06/08/2008
If the industry, on one side, seems to be cooling down this year, the capital goods category, on the other side, leads the expansion and points to a strong investment increase in the country; that's what shows IBGE's and BNDES's data published by Folha. Pushed up by the strong confidence of the businessmen and by the advance of credit to companies, the production of capital goods went 1.6% up compared to March and 30.1% compared to April/2007. That's the best performance since August/2004, according to IBGE (Brazilian Institute of Geography and Statistics). Such expansion is supported, in part, by the credit released by the BNDES (Brazilian Development Bank), main domestic supporter of long-term projects and of machinery and equipment. From January to April, the loans of the state bank went 34.6% up and amounted to R$ 6.9 billion (US$ 4.23 billion). Preliminary data from BNDES shows that even though the financing of machinery and equipment increased 47% in May, compared to the same month of 2007. They reached R$ 2.5 billion (US$ 1.53 billion) last month. In April, the total was R$ 1.7 billion (US$ 1.04 billion). The good news is that the growth includes all sectors: agriculture (increased 39.3% from January to April), industry (41%) and infrastructure (35.6%). This last one concentrates most of the financings to the acquisition of machinery and equipment (R$ 3.9 billion), according to BNDES. According to BNDES' data, the financing of all segments of capital goods is warmed. The chemical and petrochemical industries, agriculture and agribusiness (including sugar and alcohol), and road and railroad transportation stood out - pushed up by the strong increase in the credit to trucks' purchase. BNDES estimates it will lend up to R$ 25 million (US$ 15.3 million) in 2008, a growth of 30% compared to 2007.