Industrial survey shows that businessmen in the sector are optimistic about the next six months

Expectation rates remain above 50 points. This means that businessmen are optimistic in relation to demand, number of employees, purchase of raw materials and expected quantity exported. The investment intention index also shows positive numbers, which stood at 53.6 points in March.

Industrial production and the evolution index of the number of employees in the sector showed a drop from January to February 2023. According to the survey, in February the production index was 45.2 points, 2.7 points below of the previous month, and industrial employment at 48.5 points, 0.7 points less than that registered in January.

Both indicators are below the 50-point dividing line, which separates decline from growth. Historically, the decline in production is common from January to February.

“Production usually retreats even from January to February, however, from 2017 to now, this was the lowest index. In addition, the number is also lower than the historical average for the month, of 46.5 points”, explains CNI Economic Analysis manager Marcelo Azevedo.

Economist member of the Regional Council of Economics of the Federal District, Newton Marques says that the Brazilian government needs to act to achieve a balance between fiscal and monetary policies in order to encourage private sector investments. He highlights the importance of the industrial sector for the economy.

“The main sector is the secondary sector, the industrial sector. It is he who creates a link back and forth in the other sectors. The industrial sector has to have industrial policies, public policies aimed precisely at reducing household indebtedness”, points out the economist.

For Newton Marques, it is necessary to reduce household debt for the resumption of economic activity.

“Of course, it is also necessary to reduce the problem of the salary mass, which has not been growing, and the level of household debt, this is also important to allow it to have the necessary conditions for a resumption of economic activity”, he points out.

Federal deputy Vitor Lippi (PSDB-SP) points out what he considers important to encourage the development of industry in the country.

“We need to improve the business environment and really have a reindustrialization policy in Brazil. Therefore, we immediately need to review the Brazilian tax system and I hope this is a really priority measure for both the government, the Chamber and the Senate. On the other hand, we also have to work towards reducing interest rates in Brazil”, highlights the deputy.

industrial survey

The Industrial Survey also points out that the inventory evolution index stood at 50.6 points, which indicates an increase between January and February. The effective inventory level index in relation to the planned one was 51.2 points in February 2023, slightly below the one registered in January (51.6 points).

According to the survey, the number above the dividing line of 50 points shows that the entrepreneur realizes that the level of inventories of final products at the end of the month was above the planned.

The Installed Capacity Utilization (UCI) stood at 67% in February 2023, the same percentage as in the previous two months. CNI explains that the Industrial Survey is a monthly survey that listens to companies of all sizes in the industrial sector to assess the evolution of the sector. 1,637 companies were consulted between March 1st and March 9th, 2023.