Industrial production in São Paulo rose 2.95% in May, compared to April. It was up 4.4%, compared to May 2004, and up 4.7% for the year. The numbers are from a survey by the state manufacturing federation (Fiesp, Federação das Indústrias do Estado de São Paulo).
In the Food and Beverages sector there was strong growth of 7.3% in May, compared to April. However, on the other hand, the sector is down 8.2% for the year.
Fiesp director, Paulo Francini, explains that while most industrial output is driven by exports and domestic consumer credit, the Food and Beverages sector depends on consumer income.
Machinery and Equipment was up 0.3%, which is considered low. Francini says the sector needs investments to grow and there has been a brake on investments.
Finally, the Office Supplies and Equipment sector had growth of 0.4% in May, a result, says Francini, of a crackdown on contraband and piracy.
ABr