Brazil's industrial sector is experiencing a boom in this year-end period. IBGE (Brazilian Geography and Statistics Institute) research shows industrial production grew 2.8% in October over September this year - the highest growth rate since September 2003.
Compared to October 2006, the growth rate proved even more significant: 10.3%, the highest since August 2004. The accrued growth of 5.3% within a one-year period is a record result since July 2005 (5.9%).
The automotive sector was an industry highlight in October as car production was up 29.5% against the same month in 2006. Pulp/paper and office machinery/IT resources were also high-scoring industries.
According to IBGE technical experts, the increased long-term credit supply, an improved job market, and higher pay levels were key factors in determining the excellent industry performance - in addition to the production boost stemming from exports and the approaching Christmas Season.
- It is a real strong "Chinese-style" result. Investment path is also a positive indicator. We are experiencing one of the greatest general production growth cycles ever. The industrial sector has been on an upward trend for the past four years, while annual comparisons show consistent expansion has occurred over the last16 months. Moreover, (commodity) exports have contributed to keep production at current levels, says IBGE Research Manager Isabella Nunes.
Compared to October 2006, the growth rate proved even more significant: 10.3%, the highest since August 2004. The accrued growth of 5.3% within a one-year period is a record result since July 2005 (5.9%).
The automotive sector was an industry highlight in October as car production was up 29.5% against the same month in 2006. Pulp/paper and office machinery/IT resources were also high-scoring industries.
According to IBGE technical experts, the increased long-term credit supply, an improved job market, and higher pay levels were key factors in determining the excellent industry performance - in addition to the production boost stemming from exports and the approaching Christmas Season.
- It is a real strong "Chinese-style" result. Investment path is also a positive indicator. We are experiencing one of the greatest general production growth cycles ever. The industrial sector has been on an upward trend for the past four years, while annual comparisons show consistent expansion has occurred over the last16 months. Moreover, (commodity) exports have contributed to keep production at current levels, says IBGE Research Manager Isabella Nunes.
