Survey shows 55% of industries intend to invest more
Valor Econômico
The survey of the Getulio Vargas Foundation (FGV) indicated the industrial entrepreneur in Brazil is optimistic as regards 2011 and 55% of the companies are planning to invest more in machinery, equipment and in the area of production than in the previous year. It is the largest rate of series started in 2005. As regards the portion of companies planning to reduce the volume of investment, it amounts to 15%, the lowest since 2008 (13%). The Survey on Investments of the Industry 2011 is the seventh edition of the survey, always made in the months of October and November. It surveyed 829 companies responsible for the sale of R$ 452 billion (US$ 265.9 billion).
The proportion of companies foreseeing to invest more in 2011 exceeds that of the six prior years in all segments, except for capital goods, in which the amount of companies foreseeing an increase in the investments next year (51%) is exceeded by that registered in the forecasts made for 2008 (63%). 15 of the 21 sectors surveyed featured balances (difference between percentage of companies foreseeing an increase and a decrease in the investments) higher than those of 2010, and six, lower.
The forecast for the evolution of the investments in the following year is also quantified by growth or reduction ranges (from 0.1% to 5%; from 5.1% to 10%; from 10.1% to 20%; and more than 20%). Among the companies foreseeing to invest more, the most mentioned range was from 5.1% to 10%, pointed by 33% of the companies. Growth above 20% in the investment was foreseen by 26% of the companies, compared to 33% last year, while 24% of those surveyed foresee an increase between 10.1% to 20%.
The proportion of companies foreseeing sales growth next year (already discounted inflation), increased from 69% to 72%, the second highest level of the historical series, only below the forecast made in 2005 (79%). As regards the share of companies foreseeing a decrease in the sales in 2011 it decreased from 8% to 6%. In the categories of durable consumer goods and materials for construction, the share of companies wishing to increase the sales in 2011 has reached the highest levels of the series: 84% and 81%, respectively.
The hiring expectations in the industry in 2011 are also favorable. The share of companies intending to increase the total busy personnel increased from 40% in the survey conducted in 2009 to 43% in this year's survey. As regards the amount of those foreseeing to reduce the workforce, it decreased from 12% to 8% in the same comparison. Among the categories of use, the greater perspective of hiring manpower comes from the companies producing durable consumer goods. In the segment, 57% plan to increase the staff.