Brazil Industry Loses Steam

Inside a Hering factory in Brazil Brazil's transformation industry real revenues grew 1.1% in May as against April, discounting seasonal and calendar effects, according to the Industrial Indices study, disclosed today this Thursday, June 3, in Brazilian capital BrasÀ­lia by the National Confederation of Industries (CNI).

Despite the growth verified in May, the result is half a percentage point lower than the result for April, showing deceleration in the rhythm of expansion of industrial activity.

The other variable connected to production, hours worked, presented a 0.1% reduction in May when compared to April. According to the research, this index confirmed an accommodation tendency that had been identified in March.

In comparison with May last year, however, there has been growth of 2.7% and, in the accumulated result for the year, expansion has reached 5.8% over the same period in 2007.

Indices connected to the labor and employment market and real salary values also presented less expressive growth rates in May. Employment rose 0.2% over April, in the seasonal series. With this, employment, which had been accumulating growth of 4.7% in the month of April, has fallen to 4.5% in the year up to May.

The value of salaries paid also lost force in the same comparison: growth had been 6.2% from January to April, but it sagged to 5.7% from January to May.

In May, companies were operating with 82.8% of their installed capacity, in a series free of seasonal influences. The index has remained stable for nine months. This shows that industry is now living a period of maturing investment decisions.

CNI

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