Signs of recovery in Brazilian manufacturing
by Barbara Banhara, Berners Consulting São Paulo
A report released by the National Industry Confederation (CNI) shows that Brazilian manufacturing posted a downtime reduction in January, representing the best results since February 2008.
According to some specialists, Brazilian production increased in January due to an overall reduction in inventory at the end of 2012, resulting in a lack of supply versus demand.
The reduction was highlighted through two indicators: utilized capacity and hours worked. The analysis considered 21 sectors with 16 of them posting an increase in capacity utilization, with production of machinery and electrical components seeing the greatest increase.
Though it is still too early to say that Brazilian manufacturing is going to post significant results this quarter, given that the recovery depends on a number of external factors, the fact remains that consumption and investment are on the rise.
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