Industrial production falls 0.7% in August | News agency

In August 2021, the national industrial production fell 0.7% compared to July, in the seasonally adjusted series, the third consecutive negative result, accumulating a 2.3% loss in this period. In relation to August 2020, there was a drop of 0.7%, interrupting the eleven months of consecutive positive rates in this comparison. In the year, the industry accumulated an increase of 9.2% and, in twelve months, of 7.2%, intensifying the growth of July (7.0%) and maintaining an upward trend since August 2020 (-5.7%) .

August 2021 / July 2021-0.7%
August 2021 / August 2020-0.7%
YTD9.2%
Accumulated in 12 months7.2%
Quarterly Moving Average-0.8%

The decline of 0.7% in industrial activity, compared to the previous month, had a widespread profile of negative rates, reaching three of the four major economic categories and 15 of the 26 subsectors surveyed.

Between activities, the most important negative influences came from other chemical products (-6.4%), intensifying the decreases of July (-1.8%) and June (-1.0%); coke, petroleum products and biofuels (-2.6%), interrupting three consecutive months of positive rates, a period in which it accumulated an increase of 9.8%; automotive vehicles, trailers and bodies (-3.1%), marking the fourth consecutive month of fall in production and accumulating a loss of 9.5% in this period; and pharmochemicals and pharmaceuticals (-9.3%), eliminating part of the 12.4% increase seen in the period May-July 202.

Other important negative contributions came from computer equipment, electronic and optical products (-4.2%), electrical machines, equipment and material (-2.0%), rubber products and plastic material (-1.1 %), of apparel and accessories (-1.6%) and of cellulose, paper and paper products (-0.8%).

On the other hand, among the eleven activities on the rise, food products (2.1%), beverages (7.6%) and mining and quarrying (1.3%) exerted the main positive impacts in August 2021. It is also worth mentioning the positive results were registered by the sectors of metallurgy (1.1%), wood products (3.0%) and textile products (2.1%).

Industrial Production Indicators by Major Economic Categories – Brazil – August 2021
Major Economic CategoriesVariation (%)
August 2021/
July 2021*
August 2021/
August 2020
Accumulated
January-August
Accumulated in the Last 12 Months
Capital goods-0.829.941.329.8
Intermediate Goods-0.6-2.17.46.6
Consumer goods-0.1-4.36.64.1
Durable-3.4-17.319.912.2
Semi-Durable and Non-Durable0.7-0.83.72.2
General Industry-0.7-0.79.27.2
Source: IBGE, Research Directorate, Industry Coordination
*seasonally adjusted series

Among the major economic categories, still in relation to July, durable consumer goods dropped 3.4%, eighth consecutive month of reduction, accumulating a drop of 25.5%. The segments of capital goods (-0.8%) and intermediate goods (-0.6%) also retreated, with the former interrupting four consecutive months of positive results, a period in which it accumulated an increase of 6.2%; and the second with the fifth consecutive negative rate and decreasing 3.9% in this period. On the other hand, the sector of semi and non-durable consumer goods (0.7%) showed the only positive rate, thus intensifying the increase of 0.5% verified in July.

Quarterly moving average drops 0.8% in the quarter ended in August

Still in the seasonally adjusted series, the quarterly moving average of the industry dropped 0.8% in the quarter ended in August 2021 compared to the level of the previous month and maintained the downward trajectory started in January 2021.

Among the major economic categories, still in relation to July, durable consumer goods dropped 2.5%, maintaining the downward trajectory started in December 2020. The segments of intermediate goods (-0.6%) and semi and non-durable consumer goods (-0.2%) also had negative results, with the first marking the sixth consecutive month of decline and accumulating a reduction of 3.3%; and the second, interrupting two consecutive months of expansion, a period in which it accumulated growth of 1.4%. On the other hand, the capital goods producing sector (0.5%) had the only positive rate in August 2021, after also increasing in July (1.0%) and June (1.7%).

Compared to August 2020, the industry retreats 0.7%

In comparison with August 2020, the industry decreased 0.7%, with negative results in three of the four major economic categories, 14 of 26 sectors, 37 of 79 groups and 46.0% of 805 surveyed products. It is worth mentioning that August 2021 (22 days) had one more business day than the same month in the previous year (21).

Between activities, the main negative influences came from food products (-7.4%) and coke, petroleum products and biofuels (-5.2%). Other negative contributions came from rubber products and plastic material (-6.6%), beverages (-6.4%), computer equipment, electronic and optical products (-10.1%), other products chemicals (-3.4%), extractive industries (-1.6%), tobacco products (-23.3%), furniture (-12.9%) and metal products (-3. 4%).

On the other hand, among the 12 rising activities, machinery and equipment (23.7%) and metallurgy (20.0%) exerted the main influences. Other important positive impacts came from the sectors of automotive vehicles, trailers and bodies (3.6%), non-metallic mineral products (5.6%), manufacturing of apparel and accessories (8.5%) , printing and reproduction of recordings (39.1%), leather, travel goods and footwear (8.5%), wood products (9.8%) and other transport equipment (13.7% ).

Among the major economic categories, compared to August 2020, the biggest drop was in durable consumer goods (-17.3%). The sectors producing intermediate goods (-2.1%) and semi and non-durable consumer goods (-0.8%) also showed negative results, with both pointing to more intense declines than those observed in the industry average ( -0.7%. On the other hand, the capital goods segment, with an increase of 29.9%, registered the only positive rate.

The sector of durable consumer goods retreated 17.3% compared to the same month of the previous year, intensifying the 9.6% drop in July, when it interrupted four consecutive months of positive rates. The sector was pressured by the reduction in the manufacture of automobiles (-27.8%) and home appliances of the “brown line” (-29.1%). It is also worth mentioning the decreases registered by “white line” household appliances (-11.9%) and by the grouping of furniture (-13.1%). On the other hand, the main positive impacts came from the greater manufacture of motorcycles (23.2%) and other household appliances (6.6%).

The production of intermediate goods fell 2.1%, interrupting thirteen consecutive months of positive rates in this comparison. The result of August was mainly explained by decreases in the activities of food products (-12.2%), coke, petroleum products and biofuels (-9.5%), rubber products and plastic material ( -5.8%), other chemical products (-3.4%), extractive industries (-1.6%), cellulose, paper and paper products (-3.3%) and metal products (-1.4%).

The positive pressures were registered by metallurgy (20.0%), non-metallic mineral products (5.8%), machinery and equipment (10.9%), textile products (2.6%) and automotive vehicles, trailers and bodies (0.4%). Also in this economic category, it is also worth mentioning the results of groups of typical inputs for civil construction (1.4%), with the fourteenth consecutive positive rate, but the least intense in this sequence; and packaging (-2.2%), the third consecutive decline in production.

The segment of semi and non-durable consumer goods fell 0.8% in August 2021, after also retreating in July (-1.9%), when it interrupted four consecutive months of positive rates. The negative performance in that month was mainly explained by the reduction in the group of foods and beverages prepared for domestic consumption (-3.4%). Also noteworthy is the negative result of the grouping of semi-durables (-0.7%). On the other hand, the subsectors of fuels (4.8%) and non-durables (0.7%) had positive rates.

The sector of capital goods increased 29.9% in August 2021 compared to the same period in 2020, the twelfth consecutive positive rate. There were hikes in most groups, especially capital goods for transport equipment (40.0%). The other positive rates were registered by groups of agricultural capital goods (43.9%), for construction (67.7%), for industrial purposes (5.3%) and mixed use (14.7%). On the other hand, the only negative impact was in the subsector of capital goods for electricity (-1.8%).

Year-to-date, all major categories recorded high

The index accumulated in the year, compared to the same period in 2020, reached 9.2%, with positive results in the 4 major economic categories, 21 of the 26 branches, 62 of the 79 groups and 70.6% of the 805 products surveyed.

Between activities, automotive vehicles, trailers and bodies (42.6%), machinery and equipment (36.8%), metallurgy (25.0%) and non-metallic mineral products (23.9%) exerted the main positive influences on formation of the industry average. Other positive contributions came from other chemical products (8.5%), metal products (16.0%), rubber products and plastic material (14.3%), confection of apparel articles and accessories ( 31.3%), of electrical machines, equipment and material (15.6%), of textile products (25.5%), of leather, travel goods and footwear (24.2%), of wood products ( 18.9%), miscellaneous products (22.9%), beverages (5.8%), other transport equipment (23.7%) and computer equipment, electronic and optical products (8.4 %). On the other hand, among the five activities with reduction in production, the main influence was registered by food products (-6.9%),

Among the major economic categories, the greatest dynamism was observed for capital goods (41.3%) and durable consumer goods (19.9%), driven largely by increases in the manufacturing of capital goods for transport equipment (61.5 %), for industrial (23.2%), agricultural (47.3%) and construction (67.0%) purposes, in the first; and automobiles (24.1%) and “white goods” appliances (21.3%), in the second. The segments of intermediate goods (7.4%) and semi and non-durable consumer goods (3.7%) also increased in the year, although below the industry average (9.2%).