Increase in output, employment shows industry is warming up

Brazil’s industrial production showed an increase for the third consecutive month in July, and employment in the sector has not shrunk for 13 months, as per data from the Industrial Survey, by the National Industry Confederation (CNI).

The index for the evolution in the industrial production level went up 1.7 percentage points compared to June and closed out at 53.7 points, displaying an expansion in production. The indicator varies from zero to 100 points, with 50 being the dividing threshold. The further above this level, the higher and more intense the increase in production is compared to the previous month.

According to the CNI, industrial employment is still on the rise. The index for the evolution of the number of employed people reached 52 points. Also, in the use of installed capacity stood at 71 percent, the highest for the month of June in eight years.

Conversely, inventories sank in July and are still below the expected by the companies. Still, the situation is believed to be better than in the second half-year of 2020, when the shortage in supplies reached a more critical level.

For the coming six months, expectations are optimistic and have raised the intended investments for the sector, the CNI declared. Business owners expect an increase in the demand and in exports, and in the number of workers and the purchase of raw materials as a result.