The monthly variation, industrial production fell for the second straight month (Alexandre Battibugli / EXAM / SEE)
The Brazilian industry continues to show negative results this year. Industrial activity fell by 8.9% in July compared to the same month last year, the Brazilian Institute of Geography and Statistics (IBGE) said Wednesday. This is the sharpest decline since 2009, when the industry felt the effects of the global crisis of 2008. This is also the seventeenth month that followed the production closes in the red-on-year - the last time you had growth was in February 2014 (4.8%).
From June to July, industrial production shrank 1.5%, the second straight month of decline. This is the biggest drop since December 2014, when it recorded losses of 1.8%.
The decline was higher than expected by analysts polled by agency Reuters, who predicted low of 0.1% in the monthly variation and 6.2% year over year.
In the first seven months of the year in July, industrial production has retreated 6.6%; and accumulated in the last twelve months, the low is 5.3%. These data show that the poor performance of the sector going on since the beginning of last year and has been aggravated by the economic crisis. With fall in production, companies have adjusted to the new reality, eliminating job vacancies and putting employees on forced vacation or lay off (temporary suspension of employment contracts).
In the monthly comparison, the IBGE found that there was a reduction in industrial activity in fourteen of the 24 subsectors surveyed, especially food products plants (-6.2%), beverages (-6.2%), coke derived products oil and biofuels (-1.7%) and mining and quarrying (-1.5%).
According to the survey, the consumer goods segment semi-durable and non-durable recorded loss of 3.4% in July over the previous month, erasing the expansion of 3.1% accumulated in May and June.
The sectors of intermediate goods and capital goods computed falls in production for the sixth consecutive month, by 2.1% and 1.9%, respectively. About a year earlier, the capital goods segment plummeted 27.8% in July. The only positive monthly result was the durable consumer goods sector, up 9.6% over June.