Production and employment in Brazilian industry drop in October

Production and employment in Brazilian industry have dropped again. Production and employment growth rates were 45.8 points in October, according to the industrial survey released this Monday (Nov. 21) by the National Confederation of Industry (CNI). Indicators in this survey range from 0 to 100 and any value under 50 indicate a decline in production and employment.

The rate of installed capacity used also fell one percentage point in October compared to September, and stood at 65%. The survey also shows that the inventories as the businessmen planned. The indicator of effective stock compared to the planned one was in 50.6 points, around a dividing line at 50 points.

The poor performance of the sector is making businessmen revise their estimates. Indicators of demand expectations, purchase of raw materials, exports, and number of employees were under 50  in November. This shows that businessmen expect to reduce demand, exports, raw material purchases, and jobs for the next six months. As there is no short-term recovery prospect, industrialists have reduced their willingness to make investments.

The survey was conducted between November 11 and 11 with 2,371 industrial companies across the country. Of this total, 979 were considered small companies, 862 medium-sized, and 530 large.

Translated by Amarílis Anchieta