Brazil Sees Industrial Growth in October 2023

In October 2023, Brazil experienced a boost in industrial production, as the National Confederation of Industry (CNI) revealed.

Their Industrial Survey showed the industrial production evolution indicator climbing to 50.9 points, exceeding the pivotal 50-point mark that differentiates between growth and decline.

Historically, the average for October stands at 51.6 points, and this survey reflected inputs from 1,640 companies collected in early November.

This uptick in production primarily occurred in small enterprises, which scored 50.9 points.

On the other hand, larger companies exhibited a decline, indicated by a score of 49.1 points.

Medium-sized companies hovered near the equilibrium point with 49.8 points.

Marcelo Azevedo, CNI’s Economic Analysis Manager, pointed out that product stock levels in October were close to the targeted amounts.

He emphasized that such stockpile trends bode well for increasing production, especially in response to future demand surges.

Additionally, the survey noted a rise in the Utilization of Installed Capacity (UCI), going up by 1 percentage point from September to October, reaching 71%.

This level is consistent with the October average over the years.

Investment intentions also showed positive momentum, with the index rising 1.1 points from October to November, reaching 55.6 points.

This figure stands 4 points above the historical average, suggesting a robust inclination toward investment during this period.

Hiring Indicator Above Historical Average

The survey further revealed an increased intention among businesses to purchase more raw materials in November.

Nonetheless, the expectation indices for demand and raw material procurement were at 51 points, slightly lower than their historical monthly averages.

Finally, the survey disclosed that expectations for export volumes and employee numbers were just below the midpoint at 49.8 points.

This suggests a forecast of maintaining the current levels for the next six months.

Interestingly, while suggesting stability, the hiring indicator was above the historical average for October, indicating a subtle yet positive outlook on employment.

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