CNI: Manufacturing industry revenue grew 1.5% in April

Between March and April 2024, the real revenue of the manufacturing industry grew 1.5%, according to a survey by the National Confederation of Industry (CNI). According to the balance sheet, compared to April 2023, the increase was 12.2%. For the April edition, 980 companies were consulted between May 2nd and 27th.

CNI economist Larissa Nocko points out that the industry also showed a positive result in the Gross Domestic Product (GDP) in the first quarter of this year.

“This is largely due to a heated job market, a more favorable credit environment, contained inflation. This all favors demand, this internal absorption capacity, demand from consumers. So consumption has shown strong behavior”, he points out.

The survey indicates that the number of hours worked in the manufacturing industry increased by 2.4% from March to April 2024, in the seasonally adjusted series. Compared to April 2023, there was a growth of 8.2%

The employment indicator showed a slight variation of 0.3%, indicating stability in April. Compared to April last year, this index increased by 1.4%.

Wage bill and average income

The wage bill decreased by 2.8% and the average income of workers fell by 2.5% from March to April 2024, in the seasonally adjusted series. However, both remain on the rise in relation to 2023.

The CNI economist explains that the decline in April was already expected, due to the closure of a factory in the state of São Paulo.

“Due to the payment of severance pay for the month, this data from March ended up increasing. Now, in April, this number was not reproduced and showed a drop. Even in the face of this drop in average income and wage bill, these indicators return to levels they were at before this peak and return to an increasing trajectory”, he adds.

Rio Grande do Sul

It is important to highlight that this edition of the Industrial Indicators does not consider the impact of the floods in Rio Grande do Sul. This impact should be observed mainly in the next survey, which will present data for May.

Expectations

For economist Cesar Bergo, the outlook for the industry is not positive, as the number in this survey does not reflect events in May, such as the change in interest rate policy by the Central Bank, which reduced Selic interest rates.

“The prospect is that there will be no further reduction. And the interest rate is at a really high level for the industry. There is also a global economic scenario that presents some conditions that could impact the demand for industrial products”, he points out.

Bergo also states that there are some disagreements in internal policies regarding tax reform issues, which also compromises the industry’s prospects for the coming months.

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