Brazilian Industrial Production Slows In September Amid Cautious Optimism
Date
10/18/2024 12:12:52 PM
(MENAFN- The Rio Times) The Brazilian industrial sector experienced a slight downturn in September 2024, following two months of growth. The production index dropped to 48.8 points, down from 54.3 in July and 52.2 in August.
The production decline impacted companies of all sizes, according to data from Brazil's National Confederation of industry (CNI) . However, employment in the sector demonstrated resilience despite the slowdown in output.
The employment index reached 51.1 points in September, marking the third consecutive month of positive growth. Medium and large industries drove this increase, while small businesses saw a decrease in industrial employment .
Capacity utilization remained steady at 72%, which is 1 percentage point above the historical September average of 71%. This marks the sixth consecutive month that capacity utilization has exceeded the monthly historical average.
The stock level evolution indicator slightly decreased to 49.2 points in September from 49.6 in August. Meanwhile, the credit access ease index rose to 42.9 points in the third quarter of 2024, a 1.6-point increase from the previous quarter.
Brazilian Industrial Production Slows in September Amid Cautious Optimism
Raw material prices continued to rise, with the indicator reaching 62.9 points in the third quarter of 2024, a 1.6-point increase from the previous quarter. This ongoing trend of rising costs presents a challenge for manufacturers.
The industrial sector faced several key challenges in the third quarter of 2024. High tax burden remained the most cited problem, mentioned by 33.6% of surveyed industrial entrepreneurs. The scarcity or high cost of raw materials was the second most common issue, affecting 24.9% of respondents.
Looking ahead, the demand expectation index for October fell to 56.3 points, a 1.4-point decrease from September. The raw material purchase expectation indicator also declined, reaching 54.3 points after a 1.3-point drop from the previous month.
Despite these declines, both indices remain above the 50-point threshold, indicating a cautiously optimistic outlook among industrial entrepreneurs for the next six months. The investment intention indicator rose slightly to 58.3 points in October 2024, 6.2 points above the historical average.
This data suggests that while the Brazilian industrial sector faces some headwinds, it maintains a cautiously positive outlook for the near future. The sector continues to navigate challenges such as high taxes, raw material costs, and skilled labor shortages.
Brazilian Industrial Production Slows in September Amid Cautious Optimism
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