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Thanks to Auto-Industry Brazil Grows 0.3% in June

Brazilian car manufacturer Brazil's industrial production should grow 0.3% in June compared to May. The figure is an estimate by the Institute of Applied Economic Research (Ipea) and the highlight, according to the institute, should be the auto industry.

Automobile production should rise by 2.9% in comparison with May, even though production should be 8.2% lower than in June 2008.

The Brazilian auto industry has been performing well with regard to sales. In June, sales of vehicles in the Brazilian market totaled 300,174 units, growth of 21.54% over May and of 17.23% over June 2008. The trend reflects a recovery in the volume of credit available to natural persons.

Total industrial production in the first five months this year was 13.9% lower than in the same period of 2008, as a consequence of the international crisis and of the inventory cycle. In the comparison between June this year and June 2008, Brazilian industrial production should fall by 11.8%.

The Ipea Monthly Industrial Production Indicator is based on four coincident indicators used by the Brazilian Institute for Geography and Statistics (IBGE) in its physical production forecast model: flow of heavy vehicles on concession roads; auto production; cardboard production; and energy consumption.

Cardboard production also grew in June compared with May. Heavy vehicle flow on roads, however, decreased by 1.2%. The Ipea is a public foundation linked to the Secretariat for Strategic Affairs of the Presidency of the Republic.

Anba

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