Brazil Industry Has Worst Semester Since 1975

DM factory in Diadema, Brazil In Brazil, the industry grew 0.2% in June when compared to May, the sixth positive rate running. The relative result in the first half of the year, however, shows the worst result since the beginning of the recording of the Monthly Physical Industrial Production Research, in 1975. In the first six months of 2009, the industry accumulated a reduction of 13.4% in comparison with the same period last year.

When compared to June 2008, the reduction was 10.9%, the eighth reduction running. In the 12 months ending in June (the annualized result), industrial production dropped 6.5%. In the second quarter, there was growth of 3.4% when compared to the second quarter of 2008, industrial production dropped 12.3%.

The figures were disclosed this August 3 by the Brazilian Institute for Geography and Statistics (IBGE). According to the study, between the months of May and June, 13 of the 27 industrial areas registered expansion.

The highlight was the sector of extraction industries, which grew 5.3% in the period. Then came vehicles (2.6%), other chemical products (2.9%) and basic metallurgy (2.0%). The main negative pressures were exerted by the food industry (-5.4%), pharmaceutical (-4.9%) and other transport equipment (-4.4%).

In the same comparison, the IBGE document reveals that there was growth in three of the four categories. Capital goods rose 2.1%, intermediary goods, 0.7%, and consumer goods, 0.4%.

When compared to June 2008, there was a reduction in 22 of the 27 sectors researched. The IBGE technicians pointed out that "this result may largely be explained by the booming terms of comparison, as activity had grown in the first half of 2008."

The main negative impact was exerted by vehicles, which dropped 18.9%. Then came machinery and equipment (-27.4%), basic metallurgy (-22.8%) and electronic material and communications equipment (-34.5%).

Trade Surplus

After having shown signs of recovery in June, the Brazilian trade surplus reached US$ 2.928 billion in July this year, a figure 12% lower than recorded in the same period last year (US$ 3.329 billion), according to the Brazilian Ministry of Development, Industry and Foreign Trade. In June, the trade surplus had totaled US$ 4.625 billion, the highest since December 2006 (US$ 5.052 billion).

In July, exports totaled US$ 14.143 billion and imports, US$ 11.215 billion. In the fifth week of the month (from the 27th to the 31st), with five business days, the trade surplus was US$ 124 million, the result of US$ 2.631 billion in exports and US$ 2.507 billion in imports.

From January to July, with 145 business days, the Brazilian trade surplus was US$ 16.913 billion, a figure 15.6% higher than recorded in the same period last year (US$ 14.630 billion). Exports in the first seven months this year totaled US$ 84.095 billion, and imports, US$ 67.182 billion.

ABr

Tags:

You May Also Like

Brazilian coffee

World Rediscovers Joy of Drinking Brazilian Coffee

Coffee has always been a typical Brazilian product. In 1860, Brazil was already the ...

Brazil and U.S. Agree to Disagree on Venezuela

The American Secretary of State, Condoleezza Rice, affirmed yesterday that the United States will ...

Brazil Lives Under a Blackout Threat and an Ultimatum by Organized Crime

Urban buses are back to the streets of Brazil’s major city São Paulo today, ...

Brazil Cuts Budget to the Bone

The Brazilian Ministry of Planning has just revised its estimates for GDP growth for ...

Ex-Im Bank Guarantees Loans to US Firms Selling to Brazil’s Petrobras

The Export-Import Bank of the United States (Ex-Im Bank) has approved a US$ 39 ...

The Stars of Brazil’s 2008 Auto Show: 100% Nationally Designed Cars

Several multinationals in the auto industry have elected Brazil, for some time now, as ...

Exports and Imports Pushing Fast Ahead in Brazil

Exports during the first week of February (four business days), were up 26.4% compared ...

Brazil Closes Week With Record High Stocks

Latin American markets benefited from lower oil prices and continued enthusiasm for Brazil’s economic ...

For This Brazilian Thinker Obama’s Mission Is to Lead Armed Militia of Radicals

"What can we expect from an Obama government?" is the question of the hour. ...

Brazil’s House Committee to Ask for Expulsion of 18 Congressmen

The first preliminary report from Brazil’s Post Office CPI – Comissão Parlamentar Mista de ...

WordPress database error: [Table './brazzil3_live/wp_wfHits' is marked as crashed and last (automatic?) repair failed]
SHOW FULL COLUMNS FROM `wp_wfHits`