Survey: Brazil’s industrial output begins 2022 at slower pace

RIO DE JANEIRO, BRAZIL – Brazil’s industrial production started 2022 at a lower pace, in line with the trend seen in the second half of 2021, a National Confederation of Industry (CNI) survey shows. Output, employment, and the use of the installed capacity dropped from December through January.

The evolution of production index stood at 43.1 points, compared to 43.3 registered in December, a month marked by a slowdown in industrial production. The result is also below the 50 point threshold between reduction and increase.

“The index for January is virtually the same as in December 2021, which strengthens the downward trend in industrial production,” CNI stated.

The figures reflect the performance of small, medium, and large businesses in industry in general, extraction, and manufacture. The result also shows that employment was below the dividing line in January 2022 from December 2021, when it stood at 48.6 points.

“The index on the evolution of the number of workers reached 48.8 points in January — a decline, since the index was below the 50 point mark separating a fall from a surge in employment,” the survey report reads.

The use of industrial plants’ installed capacity fell 1 percentage point from December, hitting 67% — the second consecutive month dropping. The outcome is 2 percentage points below January 2021 (69%) and the same level as the average for January from previous years (67%).

Despite the indicators, investors’ expectations in February display the same moderate optimism seen in January, with different trends regarding demand and exports, CNI said.

For February, the index on the expectations around demand rose 1.3 percentage points from January, reaching 56.7 points. Expectations concerning exports, in turn, scored 54 points, 1.1 percentage points down from January.

Another index with positive expectations is the number of employed people — at 52.1 points, up 0.5 percentage points comparing January and February.

Expectations for the purchase of raw materials stood at 54.1 points, steady from January. Intended investment in February 2022 remained virtually stable, from 57.9 points in January to 58.2.