Industry output up 1.9% in the year
Brazil's industrial production remains positive in both year-to-date and last- twelve-month terms. Data from the Brazilian Institute of Geography and Statistics (IBGE) released on Thursday (1 November) shows that the sector has kept pace with the recent expansion. Output has grown by 1.9% in year-to-date terms and 2.7% in last-twelve-month terms.
More industrial production means that industry believes there will be a greater demand for manufactured products, i.e. that there is an expectation that the economy will continue to expand and that consumers will demand more and more products.
The segment that grew the most during the year was that of durable goods, where output is up by 11.6%. This segment is what produces items such as refrigerators, stoves, washing machines and other goods, which also have the potential to generate demand for credit and financing. Increased sales of these products is important because it creates stronger sources of economic growth.
Capital goods appear in second place among those with the highest increases, with 8.5% growth in the year. This segment produces items that will be used in the production of other goods, such as machinery, equipment and building materials. Increases in this segment are often linked to expansions of investments in the country.