Industry production closes 2023 with an increase of 0.2%

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The country’s industrial production increased by 1.1% in December, the fifth consecutive month with a positive result. Thus, Brazilian industry closes 2023 with an increase of 0.2%. In 2022, the result had been a drop of 0.7%. The data was released this Friday (2), in Rio de Janeiro, by the Monthly Industrial Survey (PIM), of the Brazilian Institute of Geography and Statistics (IBGE).

The result helps to place factory production at a level higher than the pre-pandemic period, 0.7% above February 2020. However, the production sector is still 16.3% below the highest level ever recorded in May 2011 .

Although last year ended on a positive note, only nine of the 25 sectors surveyed showed growth in production. The positive highlights were registered by extractive industries, petroleum products and biofuels and food products.

Among the activities with negative indicators, motor vehicles, chemical products, machinery and equipment, electrical machines, devices and materials and IT equipment, electronic and optical products stand out.

Different semesters

According to the research manager, André Macedo, 2023 was marked by two distinct periods. The first half of the year saw predominantly negative behavior in the general industry, with a drop of 0.3%. In the second half of the year, there was an improvement in the pace of industrial production, resulting in growth of 0.5%.

“This is also very visible when we look at the month-on-month indicator immediately prior, with five months of consecutive positive rates, culminating in the 1.1% expansion in December. As a result, the accumulated result for the year, which remained negative for a good part of 2023, became positive”, he observes.

The IBGE researcher explains that the 2023 result is considered practically stable, that is, timid growth. Among the factors that contributed to the industry’s performance, he lists the positive behavior of the labor market, with an increase in income and controlled inflation, especially in the food products segment.

This week, the IBGE announced that last year’s average unemployment rate was 7.8% – the lowest since 2014. Official inflation ended last year at 4.62%.

“It is also worth highlighting the positive contribution of exports, especially with regard to commodities [matérias-primas básicas negociadas com preços internacionais]. Throughout the year, we also observed the beginning of easing in monetary policy with a reduction in interest rates”, he concludes.

The article is in Portuguese

Tags: Industry production closes increase

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