Use of capacity increases and encourages industry to invest
Folha de S. Paulo
The level of use of the Brazilian productive Park has grown the significant rates. In the coming months it may reach a level similar or even greater to that seen prior to the crisis, according to the CNI (National Confederation of the Industry). The increased use of the installed capacity in processing industry encourages entrepreneurs to invest, which has rapidly taken place. The production of capital goods grows increasingly intensively and in March it reached 38.4% compared to the same month the previous year, according to the CNI. The level of use of the installed capacity (UCI) reached 82.6% in that month, while the import of capital goods increased 20% compared to the same month of 2009. The installed capacity reflects the amount of products an industry is capable of producing with the machines and units it has. The lesser the use, the greater the possibility the industry has to meet a growing demand without raising the prices.
"The good news is the UCI and the investments are high. But the investments are growing more strongly. There would be concern, if there were increase in the demand and the entrepreneur failed to invest", says Marcelo de Ávila, Economist of the entity. Another factor that makes the CNI more confident is that the pace of the industrial activity should soon feature moderation and the indicator of the use of the capacity tends to stabilize, he says. "We do not believe the industrial production will grow as much as now in the coming months because the increase in the interest rate has already come into force", adds Ávila.