Factory activity in Brazil slowed down in July 2023
Factory activity in Brazil slowed down in July 2023. A study shows less revenue and fewer work hours in the manufacturing sector.
Economist Larissa Nocko points to tight money policy and bad credit conditions. These factors hurt the manufacturing sector.
The upbeat mood from 2021 and 2022 has faded.
Compared to last month, revenue fell by 0.9%. Compared to July 2022, it dropped 6.8%. Ups and downs have marked the sector since late 2022.
Yet, growth periods haven’t offset the downturns, leading to a 2023 decline.
Employment stayed stable in July 2023. It’s the same as in January. But it’s 0.4% better than July 2022.
Both wages and average earnings stayed the same in July. They have shown small gains since the start of the year.
Factory capacity uses hit 78.2% in July. That’s a 0.3-point drop from June. Compared to last July, it’s down 3.4 points.
This continues a downward trend since 2021.
This monthly study has been around since 1992. It looks at six things: revenue, work hours, jobs, wages, average earnings, and capacity use.
This factory study has been a key measure since 1992. It helps policymakers and businesses understand trends.
In 2021 and 2022, the manufacturing sector saw significant growth. That period felt like a recovery from previous low points.
However, 2023 has shown a different pattern, with more downs than ups. This raises concerns about the sector’s future stability.
Before 2021, the industry faced multiple challenges, including global trade tensions. Technology has been rapidly changing the manufacturing landscape as well.
Automation and digitization became buzzwords, but not all factories could adapt quickly. Environmental regulations also added a layer of complexity to operations.
Labor markets showed fluctuations, affecting both wages and productivity. Trade policies and tariffs have had a significant impact on performance.
2021 and 2022 saw a rebound, attributed to pent-up demand and government support. However, inflationary pressures have begun to mount in recent times.
These multiple factors contribute to the industry’s current uncertain state.
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This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief