Industrial sales in Brazil drop for third consecutive month – CNI

RIO DE JANEIRO, BRAZIL – The real turnover of the manufacturing industry fell 2% in October, compared to September, according to the Industrial Indicators, from the National Confederation of Industry (CNI), released today (1).

This is the third consecutive monthly drop in sales, which has accumulated a retraction of 8% in this period. With this, the industry’s total sales retreated to the lowest amount since June 2020, when the economy and the productive sector were still recovering from the closure of activities in the first wave of Covid-19. In the comparison with October 2020, the turnover has registered a drop of 12.8%.

EMPLOYMENT

Employment in the transformation industry was stable for the second month in a row, which indicates, according to CNI, a depletion of the hiring recovery that started in August 2020.

The salary mass, the sum of all wages paid to workers in the transformation industry, fell 1.4% in October compared to September, after two months of small increases. With this, the real wage bill is at its lowest level since July 2020. Compared to October 2020, the drop reaches 2.1%.

The average real income dropped 1.2% in October, in comparison to September, in the seasonally adjusted series. This is the fourth consecutive retraction in the indicator, which registers successive retractions throughout 2021.

In the comparison of the accumulated between January and October 2020 with the same period in 2020, the real average income of industry workers shows a drop of 2.5%.

CAPACITY UTILIZATION

Capacity Utilization (CU) fell 0.6 percentage points in relation to September and retreated to 80.8%. This is the fourth consecutive monthly retraction.