• Categories
  • Archives

Favorable Expectations Make Brazil’s Machinery Sector Grow 16%

Machinery in Brazilian farm

Machinery in Brazilian farm Brazil's capital goods industry grew 16% in the first two months of this year when compared to the same period last year. This was the best performance since the first two months of 2001, when the increase was almost 20%.

According to the head of Industrial Analysis at the IBGE (Brazilian Institute of Geography and Statistics), Silvio Sales, the result for the sector, which is responsible for the production of machinery and equipment used in the production of other goods, is well above the average presented for other industrial sectors.

Intermediary goods (industrial raw material), for example, grew 3.3% in the period. Production of durable and non-durable consumer goods (turned to end-users) grew respectively 0.7% and 1.7%.

"There are favorable expectations in companies that are buying machinery and equipment and this creates stronger and expanded production capacity to supply a possible future increase in demand. You only decide to increase your orders of machinery and equipment if your expectations are favorable for future market demand," stated Sales.

The demand for capital goods was greater in industry, as machinery and equipment turned to this segment of the economy posted an increase of 15.8% in production. Energy and agriculture also demand this type of capital goods, permitting an increase of 14.5% and 12.4%, respectively.

As a whole, Brazilian industrial production grew 0.3% in February when compared to the month of January. The two first months of 2007 registered an increase of 3.8% when compared to 2006.

In the comparison with February 2006, industrial production in February this year rose 3%. In the accumulated result for 12 months, from March 2006 to February 2007, the variation was 2.8% as against the previous 12 months period, March 2005 to February 2006.



  • 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Your email address will not be published.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.


You May Also Like

Brazil and Argentina Tell Mexico’s Fox to Mind His Own Business

Argentine president Nestor Kirchner called on his Mexican counterpart Vicente Fox "to look after ...

Brazil Cuts a Rhode Island Worth of Amazon or Much More in 3 Months

Preliminary data reported this Wednesday, January 23, by the Brazilian Environment ministry and the ...

Brazil Will Stay in Haiti to Prevent a New Rwanda Massacre

Brazil has no timetable to withdraw its troops under United Nations flag from Haiti ...

Lula on Honduras: Brazil Acted Right and Truth Prevailed

Just before leaving Venezuela to fly back to Brazil, Brazilian president Luiz Inácio Lula ...

Brazilian Minister Criticizes High Interest Rates

Brazil’s Minister of Labor, Luiz Marinho, says he did not like the decision by ...

Corruption Yes, Vote Buying No, Say Brazil’s Government Allies

Congressmen who belong to Brazilian political parties allied with the government who are members ...

New Signs of Brazilian Industry’s Contraction

Industrial production in Brazil dropped 2% in September, compared with August. In comparison with ...

IMF: Brazil Is Reaping Fruits of Past Policies

This year, 2004, is proving to be a very important year of recovery and ...

In 4 Years Brazil Gets Its Old Dream Road from Sea to Shining Sea

The presidents of Peru, Bolivia and Brazil inaugurated a US$ 810 million highway project ...

Brazilian Trade Mission Closes Good Deals in Iran and Egypt

Brazil’s recent trade mission to the Middle East was able to close several deals. ...