Industrial production remained stable or growing in most companies in Mato Grosso do Sul in December 2023, according to the Fiems Industrial Radar Industrial Survey. The main challenge faced in the last quarter of the year was due to the lack of labor, a situation that was recurrent throughout the last year.
According to what was surveyed, however, industrial entrepreneurs in Mato Grosso do Sul reported increased optimism in relation to the projected performance of their companies, which was reflected in confidence levels and, mainly, investment intentions.
“For the next six months, expectations remain predominantly positive in relation to demand, purchases of raw materials and number of employees”, highlights the chief economist at Fiems, Ezequiel Resende. In December, 56% of industrial companies in Mato Grosso do Sul said that production was the same or higher than in November.
Regarding the use of installed capacity, 68% of industrial entrepreneurs said that it was equal to or above usual for the month. The average utilization of total production capacity was 71%. As for the confidence index, the indicator remains at a positive level with 52.2 points. Mainly reflecting the maintenance of optimism regarding the next six months. The investment intention index ended the month at 63.7 points, signaling that the majority of entrepreneurs in the state’s industry are willing to make investments.
“Added to this, the company’s general financial situation was assessed as satisfactory or good by 85% of survey participants. In relation to the main difficulties faced in the 4th quarter of 2023, the lack of labor was the main challenge highlighted by respondents, followed by the high tax burden”added Ezequiel Resende.
Finally, considering expectations for the first half of 2024, 52% of Industrial Survey participants said that demand for their products should remain stable, while 42% believe it should increase. In relation to the number of employees, the total number of employees should remain the same for 70% of respondents, while 27% expect to increase the number of employees in the range considered. Regarding the purchase of raw materials, 59% said that the volume should be the same in the next six months, while 36% intend to increase acquisitions during this period.