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Industry will still face difficulties in 2022, says CNI manager

Marcelo Azevedo, manager of economic analysis at the National Confederation of Industry (CNI), said in an interview with CNN this Friday (3), that the industry will still face difficulties in 2022, after industrial production registered a drop of 0.6% in October compared to September, according to data from the Brazilian Institute of Geography and Statistics (IBGE) released today.

This was the fifth consecutive negative result, taking the sector’s accumulated loss in the interval to 3.7%. Compared to the level of February 2020, a month before the start of the Covid-19 pandemic, the sector is 4.1% below.

“In fact, the beginning of next year will still be very difficult. As much as we have started to improve these supply problems, after the restrictions on inputs, for example, with these cost increases, it is still far from normalization. The effects will be felt in the industries and will be reflected in this smaller production for some time”, assessed Azevedo.

The CNI manager explains that even with growing occupancy levels, with the industry accumulating increases of 5.7% in twelve months, there is no improvement in real income, which reduces purchasing power and brings uncertainty to the market.

“Without a doubt this issue of demand, we see occupation growing, but we don’t see the same thing happening with real income, inflation is running the purchasing power. Uncertainties that make consumers resist making some decisions. This is not really going to change now at the turn of the year, it should persist for some time”, he continues.

Productivity

According to the CNI Industry Productivity study, labor productivity in the manufacturing industry dropped 1.3% in the third quarter of 2021, compared to the previous quarter.

If the volume produced is divided by the hours worked, productivity returned to the lowest level since the beginning of the Covid-19 pandemic, in March 2020. When compared between quarters, the volume produced fell by 1.9%, and the hours worked had a smaller decrease, of 0.6%.

Reference: CNN Brasil

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