Brazil Industry Grows Slowly Due to Strong Brazilian Currency

Brazzil Magazine covers

A Brazilian worker A monthly study by the Federation of Industries of the State of São Paulo (Fiesp) and by the Center of Industries of the State of São Paulo (Ciesp), considering seasonal changes – a procedure that permits elimination of oscillations characteristic of certain periods – reveals that the level of industrial activity in the state of São Paulo in August was 0.0% (stability).

Without the seasonal modification, the Level of Activity Index was 4.5%. In the year to date, the industry of the state of São Paulo accumulates growth of 4.9%.

To Antonio Correa de Lacerda, director of the Ciesp economic department, the result shows slight improvement, but the industrial sector is still losing opportunities.

"Industry is still growing around 5%, but is not, for example, accompanying the growth of trade, 9%. It is not due to lack of competitiveness, but to the unfavorable environment due to the appreciation of the Brazilian currency, the real, which is favoring imports."

According to Paulo Francini, director of the Research and Economic Studies Department (Depecon) at the Fiesp, transformation industry is growing fast. "The result is good when compared to last year and industry has been showing that there is space in its productive capacity."

The textile sector Level of Activity Index presented growth in August. When compared to July, the result considering the seasonal adjustment was 0.6%. When comparing the first eight months of this year to the first eight months of last year, the variation was 4.6%.

In the chemical, petrochemical and pharmaceutical sector, the variation in August was 1%. Between January and August 2007, in comparison with the same eight months last year, the sector grew 6.7%.

The negative performance in the month of August was for the vehicle sector, which registered a reduction of 6.9%. In 2007, from January to August, the result has also been negative (a 1.1% drop) when compared to the same period in 2006.

CNI

Tags:

You May Also Like

Brazzil Magazine covers

Brazilian Camargo Correa Join Swiss and Chileans in Airport Venture

Camargo Corrêa, a Brazilian real estate developer  has joined Swiss company Unique, which manages ...

Brazzil Magazine covers

Brazilian Armed Forces Complain of Obsolete and Broken Equipment and Low Wages

Brazil's armed forces, the largest military in Latin America, are badly equipped, demoralized over ...

Brazzil Magazine covers

It’s Official: Bank of Brazil Opens Branch at Emirates Towers in Dubai

Banco do Brasil (Bank of Brazil) is going to officially inaugurate its representation office ...

Brazzil Magazine covers

Left Is Right

President-elect Lula is honest, passionate, smart, and charming. Forget his lack of formal education. ...

Brazzil Magazine covers

Venezuela’s Chances in Mercosur Dim After Chavez Called Quasi-Dictator in Brazil Senate

Chances of Venezuela ever joining the Mercosur received a full blow this week when ...

Brazzil Magazine covers

Minister Sees 2006 as a Green Year for Brazil

Brazil’s Minister of Agriculture, Roberto Rodrigues, says that with changes in macroeconomic policy and ...