Brazilian Industrial Production Shrinks Slightly

    Brazil's industrial production

    Brazil's industrial production Brazil's industrial production saw a 1.3% reduction in August compared with the previous month, according to the Monthly Industrial Survey, disclosed this Thursday, October 2, by the IBGE (Brazilian Institute of Geography and Statistics). The accumulated expansion rate of industrial activity in the first eight months this year was 6%, and in the 12-month period ending in August, 6.5%.

    According to the survey, more than half the sectors analyzed recorded negative results. Out of 27 sectors surveyed, 15 had negative results. The one that stood out most was chemical products, at -5.5%. Deflation was also recorded in the foodstuffs (-3.1%) and oil refining (-41%) sectors, due to interruption in one of the units.

    Out of the industrial segments that recorded significant growth rates, the highlights were pharmaceuticals (4.9%), electronic material and communication equipment (3.9%), and automobiles (1%).

    The IBGE survey also shows that the product category that had the most relevant reduction was that of intermediate goods (inputs), at -2.7%, the highest rate of decrease for the category since October 2001.

    The semi-durable and non-durable consumer goods sector also recorded a negative rate (-0.3%), after having grown by 2.7% from April to July.

    In turn, capital goods (machinery and equipment) remained stable (0.1%) and durable consumer goods recovered from the losses in July (-4.3%) to grow 2.1%.

    Brazil-Argentina

    The Local Currency Payment System (SML) established between the Central Bank of Brazil and the Central Bank of the Argentine Republic (BCRA) started October 2. The president of the Central Bank of Brazil, Henrique Meirelles, went to Buenos Aires, Argentina, to attend the opening ceremony.

    According to Resolution #3,608, "the SML is a computerized system through which transfers of funds pertaining to revenues from Brazilian exports to Argentina and to the payment of Brazilian imports from Argentina, in reais [Brazilian currency] and Argentine pesos, respectively."

    The resolution provides that it will be up to the Central Bank of Brazil to consolidate, on a daily basis, the figures concerning payments and receipts processed under the SML with the Central Bank of the Argentine Republic.

    The Brazilian bank should then calculate the equivalent value in United States dollars and the net value to be transferred by the indebted central bank.

    ABr

    Tags:

    • Show Comments (0)

    Your email address will not be published. Required fields are marked *

    comment *

    • name *

    • email *

    • website *

    This site uses Akismet to reduce spam. Learn how your comment data is processed.

    Ads

    You May Also Like

    Brazil Helps Africa Create Research Infrastructure

    Brazil plans to launch a project to boost public-health research in Portuguese-speaking countries in ...

    Beware Brazilian Food

    In the south of Brazil, some farmers have been illegally cultivating genetically modified soy. ...

    CanaVialis, Brazil

    Monsanto Buys World’s Largest Sugarcane Breeding Firm in Brazil

    US-based agriculture company Monsanto has completed the purchase of Brazilian firm Aly Participações Ltda., ...

    Favelas Will Change When People Feel Proud of Living There

    When someone hears about life in the slums of Brazil, Kenya or other places ...

    World’s Love for Coffee Feeds Brazil’s Realcafí©

    The Brazilian soluble coffee factory Realcafé, from the state of EspÀ­rito Santo, in the ...

    World Cup Mascot 2014

    World Cup and Olympics: Just Another Example of Brazil’s Perverted Generosity

    Brazilian history begins with a gesture of inverted generosity: civilizing the native population, exploiting ...

    This Brazilian Is a Jewel Designer to Sheikhs and Top Models

    In love with Arab culture, the source for inspiration of her creations, Brazilian jewelry ...

    Brazil-India Joint Venture Wants to Export Wagons

    Santa Fé, a maker of wagons that is based in the city of Santa ...