Industry output up 1.1% in October

Data from the Brazilian Institute of Geography and Statistics (IBGE) shows that national industry has started to grow again in October. According to the institution, there was a 0.2% increase in production compared to September, and 1.1% from October last year. The numbers were released on Tuesday (4 December).

With the result of the period, Industry output reached a 1.8% increase in the year, or 2.3% in last-12-month terms. The figures also show that positive performance has reached almost every branch of industry: of the four major categories, three have grown; of 26 segments, 17 had positive results.

Production of capital goods (i.e. items used for the manufacture of others) grew 10.7% compared to October last year. This is important because these products are associated with investments - the greater their output, the greater the confidence in the future, since they can help increase productivity and output.

Performance of this segment was driven chiefly by transport equipment, which grew 15.7% in production compared to October last year, with increased manufacturing of trucks, trailers and semi-trailers and tractor-trailers are also helping to drive growth. Positive rates were also seen in agricultural capital goods (29.7%), construction (17.6%), electricity (9.1%) and mixed use goods (0.1%).

Consumer optimism

Production of durable consumer goods has also increased. These are manufactured goods that can be used for longer periods, such as automobiles, washing machines and refrigerators. An increase in durable goods production means that the industry sees consumers beginning to make bigger purchases or obtain credit seeking to effect them.

Compared to October last year, production of durable goods grew 6.8%. The highlights of the month were cars (10.8%), white goods (8.8%) and motorcycles (26.4%). Items classified as white goods are those appliances used for the basic needs of a home, such as refrigerators and stoves.