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Brazilian industrial production increased for the 4th consecutive month

The industrial production returned to growth in Brazil and took an uptrend.For the fourth consecutive month, registered a positive rate, a 1.1% increase in the comparison between May and June. The data are from the Brazilian Institute of Geography and Statistics (IBGE) and were released on Tuesday (2).

This indicator is important because the industry only produces if it has confidence in the future be able to sell their goods. More production also means, at some point, more jobs and, ultimately, helps to boost the Gross Domestic Product (GDP).

André Macedo, manager of the IBGE Industry Coordination, explained that the upward trend has been influenced by capital goods segment of the industry that manufactures items that can generate more wealth, such as machinery and equipment for construction.

An economy that increases the production of capital goods is preparing to, at some point, increase investment. As in a virtuous circle, when these projects out of the paper, generate employment, income and growth for the country.

Investment and employment

According to Macedo, capital goods were up 2.1% between May and June, the sixth consecutive rise in the indicator. "There is a continued upward trend," noted the coach.

This recovery is also widespread. Among the 24 branches observed by IBGE, 18 had positive rates in June. The main positive influence came from automotive vehicles, trailers and bodies with 8.4% high.

Other contributions came from perfumes, soaps, cleaning products and personal care (4.7%); metallurgy (4.7%); manufacture of apparel and accessories (9.8%); leather goods, travel items and footwear (10.8%);pharmaceutical chemicals and pharmaceuticals (4.4%); and rubber and plastics products (2.4%).