Brazil Industry Grows Slowly Due to Strong Brazilian Currency

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:

Ads

You May Also Like

Minister Wagner and Bishop Cappio hug after negotiations

Brazilian Bishop’s Hunger Strike Gives Church a Black Eye

After 11 days of fasting in protest for the planned transposition by the government ...

Report on Boeing Tragedy in Brazil Will Spread the Blame

The preliminary report on the worst Brazilian air accident ever will not blame just ...

The Making of Lula of Brazil

A new book on Lula explores the Brazilian President’s private and emotional life in ...

Petrobras Gets New Steam Pipeline in the Brazilian Northeast

Petrobras, the state-controlled Brazilian oil company, is ready to build a steam pipeline in ...

Crisis what Crisis? Brazil Exports to Arabs Jump 50%

Brazilian exports to the Arab world returned to strong growth in March. According to ...

Brazil’s Lula Hurt and Mad at Environment Minister’s Resignation

Brazilian President, Luiz Inácio Lula da Silva, compared this Wednesday, May 14, the decision ...

Awash in Dollars, Brazil Buys Back US$ 2.3 Bi in Foreign Debt Bonds

The head of Brazil’s Secretariat of the National Treasury, Joaquim Levy, reports that the ...

Red Tape Prevents Brazil from Becoming Global Industrial Giant

Apex Brazil, the Brazilian Export and Investment Promotion Agency, intends to define before the ...

Brasília’s Corruption Case Delayed. Main Witness Also Has Rap Sheet

Brazilian Durval Barbosa, the man who accused some 30 politicians and contractors of Brazilian ...

Case of American Pilots Involved in 154 Deaths in Brazil Back in Court

The Brazilian court is once again dealing with the freak 2006 aviation accident that ...