The State of São Paulo industrial production to go 0.5% up in April
DCI - 05/14/2008
The production of the industries of the state of São Paulo regarding April may go 0.5% up compared to the previous month. That is what the Industrial Production Index (SPI) of São Paulo, released yesterday by Fundação Getúlio Vargas (FGV), shows. In March, the index increased 2.6% in relation to February, in the seasonally adjusted series. In an announcement, FGV and AES Eletropaulo, a partner in the survey, explain that "regardless of the decrease of the rhythm of activity in relation to March, when industry of the state of São Paulo registered an expansion of 1.9% in the monthly comparison base, the result leads to the rise of the variation accumulated in 12 months, from 7.7% registered in March to 8.2%, in April". The institutions informed that the monthly results are preliminary and subject to review. The SPI was considered one of the indexes in the improvement of the performance of the retail, industry and economic activity in general by the Institute for Studies in Industrial Development (IEDI). Besides the index, the production of cars also points to a more vigorous growth of the industrial sector in relation to March. According to the IEDI, however, it should be remembered that, in March, the industrial production experienced the effects of two lesser business days, in relation to 2007, and of a significant retraction of the production of oil byproducts due to technical reasons. Regarding the production of automobiles, there was a growth of 34.4% in relation to the same month of 2007 (with the variation of 13.4% in March), and the sector accumulated an increase of 23.5% in the year. Fed by the dynamics of the domestic market, heated by the vast credit and increasingly longer payment periods, the car industry has been leading the Brazilian economic growth. The IEDI emphasizes that the growth of the state of São Paulo industry regarding April/2007 was 14.4%, in other words, "a great recovery in the annual comparison".