Brazil’s industrial sector experienced a modest 0.1% growth in October compared to September, factoring in seasonal adjustments.
This information comes from the Brazilian Institute of Geography and Statistics (IBGE). They released a detailed report on Friday, December 1, 2023.
Looking at the year-on-year comparison, there was a 1.2% rise in October 2023. This is in comparison to October 2022.
It’s important to note that these figures don’t account for seasonal adjustments. Despite this rise, the industrial sector has not grown significantly over the year or the past 12 months.
The 0.1% increase in October comes from several areas. The food products sector grew by 1.6% from September.
The pharmochemicals sector also saw a notable rise, increasing by 3.7%.
Other sectors showing growth include automotive vehicles, trailers, and bodywork (up by 0.9%).
Also, beverages (increasing by 1.6%), machinery, electrical appliances, and materials (rising by 2.3%), and the rubber and plastic materials sector (up by 1.3%) were up.
According to the IBGE, 14 industrial activities showed growth, while 11 saw declines in October.
The sectors with the most significant drops were petroleum derivatives (down by 1.4%) and extractive industries (decreasing by 1.1%).
In broader economic categories, only intermediate goods had positive growth, increasing by 0.9%.
In contrast, durable consumer goods decreased by 2.4%, capital goods by 1.1%, and semi-durable and non-durable consumer goods by 0.3%.
This shows a mixed picture of Brazil’s industrial performance in October, with some areas growing and others declining.
Background
This modest growth in Brazil’s industrial sector reflects the challenges and resilience in the country’s economy.
Historically, Brazil has been a strong player in Latin America’s industrial landscape. However, recent years have seen fluctuations due to global economic shifts.
For instance, Brazil’s industrial production faced declines during global economic downturns.
The growth in the food and pharmochemicals sectors indicates a shift towards these industries. It also shows the adaptability of Brazil’s economy in meeting changing market demands.
Comparing Brazil’s industrial performance with other Latin American countries, it often ranks high in production and diversity.
These trends suggest that Brazil’s industrial sector, despite challenges, remains a vital part of its economy and is capable of gradual recovery and growth.