Fiesp expects a drop of 0.5% in industrial production in 2022 after October data

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Despite the 0.3% increase in industrial production between September and October, signs of deceleration in several industrial segments lead the Federation of Industries of the State of São Paulo (Fiesp) to expect “low dynamism” of activities in the coming months and a drop in 0.5% of production in 2022. If confirmed, it will be the sixth retraction in ten years, recalled the entity in a report.

Data from the Monthly Industrial Survey – Physical Production (PIM-PF) were released this Friday (2nd), by the Brazilian Institute of Geography and Statistics (IBGE).

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“After a strong recovery during 2021 and the first months of 2022, some activities indicate a slowdown. The map (of industry heat, with data from October 2021 to October of this year) shows that, in the manufacturing industry, 17 activities were accelerating and three were slowing down in October 2021; in the same period of 2022, this result was reversed, with only five activities accelerating and 12 cooling down”, evaluated Fiesp.

The October result released by the IBGE was in line with Fiesp’s monthly projection, which was also a 0.3% increase.

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Fiesp recalled that, with the latest results, industrial activity remains 2.1% behind the pre-pandemic level, considering the month of February 2020.

The entity argued that, even with the October growth, a stronger expansion of the sector has been limited by unfavorable factors, such as monetary tightening, high level of uncertainty in the economy, caution in relation to global supply chains and external demand. “In this context, the loss of dynamism has been propagating among the segments”, he said in the document.

Source: CNN Brasil

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