RIO DE JANEIRO, BRAZIL – Turnover in the Brazilian machinery and equipment industry grew 45.4% in June compared to the same month last year, totaling R$17.5 (US$3.4) billion in 2021. Compared to last month there was stability, with a variation of -0.1%.
The data were released July 28 by the Brazilian Association of Machinery and Equipment Industry (ABIMAQ).
Sector sales in the past 12 months totaled R$198.7 (US$39) billion, an increase of 27.9%. In the first half of the year the sector’s revenue grew 40.3% compared to the same period in 2020. Revenue from January through June exceeded R$100.2 billion. For this year, ABIMAQ is projecting 18% to 20% growth in the sector.
According to the entity, results are explained by continued growth in sectors linked to agribusiness and by the recovery of areas linked to durable and semi-durable goods consumption. The high growth, above 45%, is also justified by the fact that the comparison base in 2020 is low, given the health measures required to control the Covid-19 pandemic.
“Growth now is very high, at 27.9% [half-year], but we are forecasting between 18% and 20% growth by the end of this year. The sector will continue to accelerate, but the low base will be diluted with other higher bases from the previous year,” explained ABIMAQ’s president José Velloso.
He adds that “the figures could be better, if it weren’t for exports that are still low compared to last year’s average.” Overall, the results are considered encouraging for the machinery and equipment industry, but still 23.8% below the average posted between 2010 and 2013.
As for jobs, 61,000 positions were created in June, compared to last year. The sector directly employs 357,000 people.