Industry in Brazil Wants to Grow Installed Capacity by 15%

Industry ABCBrazil’s industry plans to expand installed capacity by 14.6% on average this year. The rate is the highest in eight years, as shown by a survey disclosed by the Getúlio Vargas Foundation.

The Industry Investment Survey shows that for the 2010-2012 period, sector forecasts are for expansion of 23.8%, higher than last year’s 21.2% estimate for the 2008-2010 period. The percentage, however, is lower than projections for 2008, when they had reached 25.1%.

The consumer goods sector, which includes furniture and vehicles, had its highest expansion forecast. The capital goods (machinery and equipment) and intermediary goods (garments, shoes and food) sectors came in tow, with average expansion forecasts of 15.4% and 13.8%, respectively.

For the 2010-2012 period, the greatest rate of investment in productive capacity was also verified in the consumer goods sector, with 27.1%. In capital goods, the rate rose from 17.1% in 2009 to 25.9% in 2010, whereas in intermediary goods, the forecast for this year is 21.7%, against 19.9% last year.

Among the companies researched, 80% consider the level of domestic demand a positive influence for investment in 2010, whereas 40% of industries said that foreign demand was a positive sector for the investment forecast.

Regarding financing conditions for this year, 42% of the companies interviewed consider forecasts positive, the best result since the research started being executed. Interest rates, in turn, were considered a positive influence by 31% of the market and negative by 29%. To the FGV, despite the divided opinions, this is also the best result for the series over the last four years.

For execution of the January/February 2010 Industry Investment Survey, Getúlio Vargas Foundation heard 723 companies between January 4th and February 26th of this year. Together, these companies totaled revenues of 460.3 billion Brazilian reais (US$ 255.6 billion) and employ 880,000 people. The objective of the research is to supply information regarding the route of productive investment in the industrial sector.

ABr

Tags:

  • Show Comments (0)

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

Discovery Brings a Collection of Brazilian Characters to Your TV

"The goal of Discovery Atlas is to create the most complete visual record of ...

This Crisis Won’t Kill, It Will Only Make Brazil Stronger, Minister Believes

Dilma Rousseff, the Chief of Staff of Brazilian president Luiz Inácio Lula da Silva, ...

Killers of Landless Leaders in Brazil Still at Large

On August 20, two leaders of the Landless Movement (MST) were assassinated (shot in ...

CFIF Wants U.S. to Stop Brazil from ‘Stealing US Patents’

While the U.S. Trade Representative’s Office this week announced a new initiative to end ...

RAPIDINHAS

Found in a trunk 24 years after its author’s death, The Yellow Sofa is ...

A locomotive from the Vale do Rio Doce company

Brazil’s Mining Giant CVRD to Use Biofuel in Its Trains

The president of Petrobras Distribuidora (BR), Graça Foster, and the logistics executive director at ...

Brazilian Government Gives Fishing Its Own Ministry

The president of Brazil, Luiz Inácio Lula da Silva, sanctioned last week the bill ...

Disunity Rally

President Fernando Henrique Cardoso called the march undemocratic since one of its objectives was ...

Arafat Thanks Brazilian Representatives

The president of the National Palestinian Authority, Yasser Arafat, thanked Brazil’s federal representative Jamil ...

Exports from Santa Catarina, Brazil, Grow 20%. US Client Number 1

Brazil's southern state of Santa Catarina saw its exports grow 21.4% from January to ...