US Real-Estate Crisis Puts Big Dent on Brazil’s Wood Industry

Santa Catarina, Brazil Sales by the industry of Santa Catarina state in southern Brazil have accumulated a 7.63% growth from January to September in comparison with the same period of last year but the state saw a significant drop in its activity in September.

The SC Industrial Indicators survey, conducted by the Federation of Industries of the State of Santa Catarina (Fiesc) among 203 large and medium-sized industries, and disclosed Monday, November 5, shows that industrial sales by the state had a 7.58% reduction in September compared with August.

The greatest decrease in sales in the month of September took place in the wood products sector (-13.23%), mostly due to the United States real estate sector crisis. Other important sectors in the Santa Catarina state industry that had sales reductions were those of foodstuffs (-10.64%), metal products (-12.61%) and electrical machinery, devices and materials (-9.02%).

According to the FIESC, despite the decrease in sales in September, demand is expected to improve late this year. Until September, the best performances in comparison with 2006 were recorded in the segments of foodstuffs (18.66% increase), metallic products (13.77%) and machinery and equipment (12.78%), and highlights were refrigerators and compressors.

The remaining survey indicators followed the same sales trend, of reduction in August and growth in the accumulated result for 2007. Hours worked in production for the surveyed industries increased by 1.15% from January to September over the first nine months of 2006, with the greatest advancements in machinery, electric devices and material, automotive vehicles and metal products.

Total wages paid by industries in the state of Santa Catarina are 8.60% higher in the accumulated result for 2007. The most significant rises in comparison with last year were those of manufacturers of electrical machinery, devices and material, electronic material, and communication and foodstuff equipment.

The use of installed capacity in large and medium-sized industries in the state of Santa Catarina currently stands at 83.51% in the accumulated result for the year, against an average of 82.39% in the same period of 2006.

Five segments have already exceeded a 90% rate of use of production capacity: foodstuffs, cellulose and paper products, ceramics tiles, machinery and equipment, and electrical machinery, devices, and material.



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