Industrial Sector Shows Production and Job Increases in Brazil

On March 19, the National Confederation of Industry (CNI) released a survey showing a March increase in industrial production and continued job growth in the sector.

Big and medium-sized companies increased their production last month. The production indicator rose to 51.0 points, up 2.5 points from February’s 48.5 points.

Job growth is also strong. The job indicator scored 50.4 points in March, two points higher than the usual for this season.

Marcelo Azevedo from CNI said, “The industry began 2024 with strong job growth. This trend is holding, but low domestic demand still troubles businesses.”

Even with better production scores, industry leaders are unhappy with their financial start to the year.

The happiness indicator fell 1.6 points from late 2023, dropping to 49.4 points in March.

Survey scores range from 0 to 100. Scores under 50 show a drop, including a fall in profit satisfaction.

The cost of raw materials went up by 2 points to 56.8 points in March. This points to wider cost increases.

High raw material costs are now a top issue, rising to third place with 19.6% of companies mentioning it.

High taxes are the biggest issue, at 35.7%, followed by low domestic demand at 30.6%.

The survey found that usage of factory capacity stayed the same at 68% in March, as expected for the month.

Stock levels rose from February to March, hitting 50.4 points. But stocks are still lower than what industries hope for, showing at 49.8 points.  This is the fourth month without too much stock.

For April, companies expect more exports, more raw material buying, and higher demand. Job forecasts are stable.

The investment intent score is now 57.0 points, slightly up from March. The survey interviewed 1,576 companies of various sizes from April 1-9.

This data is crucial as it shows how industry leaders feel and what they expect, helping predict economic trends.

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