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Brazilian Industry Grows 3.3%, a Lower than Expected Rate |
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Written by Marli Moreira
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Thursday, 29 September 2005 |
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The manufacturing sector in São Paulo, Brazil's largest city, registered an improved performance in August in comparison with July, expanding 4.5%, without taking into account seasonal effects.
This result, however, was 0.4% less than in August, 2004. So far this year, the cumulative expansion amounts to 3.3%, somewhat lower than the 3.9% increase that occurred between January and July of last year in relation to the same period in 2003.
These data appear in the study, Conjunctural Survey, which calculates variations in the Indicator of Level of Activity (INA). The study, done by the Federation of Industries of the State of São Paulo and the Center of Industries of the State of São Paulo (Fiesp/Ciesp), shows that, despite the slower pace, industry experienced a situation similar to the one that occurred last year in the transition between July and August.
In the opinion of Paulo Francini, director of the institution's Economics Department (Depecon), the modest revival in August maintains the sector's "hazard warning" flashing. As a projection of what may happen during the last four months of the year, it indicates a lack of optimism among the sector's entrepreneurs.
"August's result fell short of the desired result, and there are plenty of reasons for industry not to demonstrate vigorous growth," he emphasized. He went on to characterize as mediocre the 4% increase that is being forecast.
Agência Brasil
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